Raffle House

rus2007

Have had my house on the market for nearly 12 months and have had two sale agreeds in that time that have both fallen through and really need to sell the house.

Have dropped guide prices several times in the last 12 months in line with drop in property prices in the area but can't seem to sell it.

was speaking to a guy at work yesterday and he said whyt don't i raffle it off - he said it used to happen in the 80's when the housing market was very slow and people couldn't sell houses.

say 3000 tickets @ €100 ea - €300,000. A 3000 to 1 change of winning a house worth 300K isn't too bad odds.

Could anybody tell me is this legal?? And what are the tax implications for the seller & winner??

Victor

Sounds like a mugs game for buyer and seller. The problem is getting enough people to pay. They might for a charity, but not if the charity is your pocket.

I'm not sur eif you would need to comply with the Lotteries Act(s), but gambling is essentially tax free.

punchestown

You would require a licence from your local superintendant to run such a lottery and the chances of him granting such are nil. Barney Curley, the legendary gambler, carried out such a raffle in the early 80's on a property of his Mullingar House. Part of the proceeds went to a local GAA club but he was still arrested and brought through the courts over it and was lucky to escape with just a donation to the poor box!

rus2007

looks likle that idea is out then - as well worth a try!:D

punchestown

Are you trading up or selling an investment property? How low are you willing to go pricewise?

rus2007

trading up / building - had a sale agreed on the proeprty last august for 275K and we are currently guiding at just under 250K - so we have dropped 10% and would possibly consider offers over the 240K mark

patrickolee

Victor wrote: »

I'm not sur eif you would need to comply with the Lotteries Act(s), but gambling is essentially tax free.

Ehhhh, no its not.

http://www.bettingmarket.com/eriesinnen090101.htm

astrofool

Another problem is that these rarely get enough interest for the raffle to go ahead, and end up having to give the money back.

Glowing

I'd buy a ticket

Cantab.

rus2007 wrote: »

Have had my house on the market for nearly 12 months and have had two sale agreeds in that time that have both fallen through and really need to sell the house.

Have dropped guide prices several times in the last 12 months in line with drop in property prices in the area but can't seem to sell it.

was speaking to a guy at work yesterday and he said whyt don't i raffle it off - he said it used to happen in the 80's when the housing market was very slow and people couldn't sell houses.

say 3000 tickets @ €100 ea - €300,000. A 3000 to 1 change of winning a house worth 300K isn't too bad odds.

Could anybody tell me is this legal?? And what are the tax implications for the seller & winner??

First of all you'd have to get a lottery licence from the guards.

Secondly, why don't I just walk into a Casino with my money and play black on the roulette table all night? Same odds (some casinos even pay 50% if it lands on zero!)

daltonr

A 3000 to 1 change of winning a house worth 300K isn't too bad odds.

But according to yourself your house is only worth 240K.

we are currently guiding at just under 250K - so we have dropped 10% and would possibly consider offers over the 240K mark

So odds of 3000 to 1 with a payoff of 2400 to 1 actually are pretty poor odds.

-Rd

Cantab.

daltonr wrote: »

But according to yourself your house is only worth 240K.



So odds of 3000 to 1 with a payoff of 2400 to 1 actually are pretty poor odds.

-Rd

Yup, you'll get better odds on a roulette table. And, roulette tables are instant -- you either win or lose and the house pays out instantly. No waiting around for the OP to arrange 3,000 €100 entries for a raffle that may or may not take place.

A Random Walk

rus2007 wrote: »

Have dropped guide prices several times in the last 12 months in line with drop in property prices in the area but can't seem to sell it.

Why are you dropping the price only in line with the market? Either you get in with your drop early or your neighbour does and sells their house first. The market is your competition.

Victor

patrickolee wrote: »

Ehhhh, no its not.

http://www.bettingmarket.com/eriesinnen090101.htm

Irrelevant. There is no income tax on gambling. Betting seems to have tax of 2%, which isn't what the OP is suggesting.

athtrasna

Totally illegal. 1956 Gaming and Lotteries Act is VERY strict. See http://www.irishstatutebook.ie/1956/en/act/pub/0002/index.html

johnnyskeleton

astrofool wrote: »

Another problem is that these rarely get enough interest for the raffle to go ahead, and end up having to give the money back.

Or having to give the property to one of the four people who paid 100 each for tickets.

astrofool

johnnyskeleton wrote: »

Or having to give the property to one of the four people who paid 100 each for tickets.

They don't HAVE to go ahead with the raffle, and would specifically word it as such.

dushflan

Any progess on this? I was thinking of doing the same myself in Tipperary. I think its really down to getting a license from the guards. Does anyone know if it might be easier get the license if you gave a % to charity??

ballooba

Why not just drop your price to a reasonable level? i.e. lower than your neighbours.

dushflan

I have put the house to Price on Application and there are still no buyers . . people are just holding out for the interest rates to fall and the prices to decrease even further. I am thinking of donating a % to A.W.A.R.E. as well so some good would come out of it as well.

galwaybabe

About ten years ago I put a van up for raffle. I sold 100 tickets at £6 each (£600). I bought the van for £300 so did well on the profit front. Did the raffle in a bar and twas great craic. It took quite a while to sell the tickets. Not sure how it would work on the house scale of things

dushflan

I enquired with the local guards in Thurles and they said its illegal becasue you are making a personal gain yourself. All proceeds must go to the charity.

athtrasna

dushflan wrote: »

I enquired with the local guards in Thurles and they said its illegal becasue you are making a personal gain yourself. All proceeds must go to the charity.

See the link to the Gaming and Lotteries Act I posted earlier. The legalities are in unusually readable English and it's clear that the OP would have zero chance of getting a licence.

confuzed

i have seen such kinda things in recently (2006) in Donegal when an EA raffled one house out of around 70 houses for advertising but i am sure money went for charity.

TwoShedsJackson

Oh how times change, seems only two years ago people were paying through the nose to buy a shoebox flat somewhere and now sellers are reduced to trying hare-brained schemes to shift a house..

beeno67

dushflan wrote: »

I have put the house to Price on Application and there are still no buyers . . people are just holding out for the interest rates to fall and the prices to decrease even further. I am thinking of donating a % to A.W.A.R.E. as well so some good would come out of it as well.

I have bought a number of properties over the years. I have moved a number of times and I also bought investment property. I would never answer an ad with "Price on Application" on it. If you want to sell advertise your price and make it low enough to sell the property.