I am thinking of going into the house raffle/lottery/competition business. Why? Because people appear to be making cash from such activities.
As another property hits the pages of the press for being offered as a prize in a lottery (sorry competition), I decided to delve a little deeper and actually read the terms and conditions of this Cheltenham property raffle. What amazed me the most was a clause that allows the owners/promoters to charge 35% for admin.
This is great for the promoters when one takes into account that the vast majority of these raffles/lotteries don't ever appear to meet the minimum amount of tickets needed to be sold. For example, take the Cheltenham house. Currently, 9200 odd tickets have been sold at £25 a pop = £230,000. Given the competition has been running since September and with a minimum 40,000 odd tickets needing to be sold it doesn't look likely they will reach this threshold (especially as they have had TV coverage to boot). Depending on the volume of tickets sold the pot of loot can then be offered as a prize draw so £230,000 x 35% is a cool £80,500 (at current numbers) in admin. Not bad for a few months online marketing.
Surely a win, win for the owner. In the extreme event they sell all the tickets, they sell the house at the probably over valued rate and if they don't sell all the tickets they make a tidy sum in admin charges. On balance, the punter has the raw end of the deal as a £25 stake at 9,000 to one for £150,000 isn't great odds.
Issues are still being mooted as to whether these events constitute an illegal lottery and I have read of one woman being arrested. That said, the main thrust of the argument revolves around the level of skill required to answer the question so it wouldn't be too difficult to make the question a little harder and fall within the guidelines.
So why not build a property competition portal and take a modest % for admin.
Roll up, roll up!