Imagine buying a raffle ticket in a bid to win a property? While this might sound strange to some, it isn’t to the many American property owners who have engaged in this kind of practice to move their properties into new hands.
With the current situation in Singapore where many new developments are expected to hit a very slow market, property raffles might just become the next big thing since the sliced bread.
How do Property Raffles Work?
Property raffles are not well known by many home owners but might just be the one solution that could help them sell their home in a recession without losing a dollar.
The way it works is like this: Let’s say you want to sell your home and expect to get at least $500,000 for it. Due to the market being slow in your country interest levels are non existent and the only way you can get rid of your property and still get your asking price is via a property raffle.
So you sell $50 tickets to interested parties who hope to win a home by buying a ticket. At $50 a ticket you will need to sell 10,000 tickets to make your original selling price.
Now given the fact that most people rather spend $50 with the chance to win a new home opposed to spending $500,000 they could never afford in the first place, your own chances of selling your home will increase many fold.
But, are Property Raffles Legal?
Before you rush out to find willing ticket buyers make sure to check with a solicitor or attorney on whether you are actually allowed to legally (sell) your property that way. Just because you can do this in the US and Singapore doesn’t mean you can in the country you live in.
Also, with schemes like this costs of marketing the scheme, lawyer fees and tax will have to be considered before settling for the ticket prices.
Reviving of a Doomed Market
With the release of the newly published report “Emerging Trends In Asia Pacific Real Estate” many Singaporean property owners are now considering the alternative – namely property raffles – to outplay the doomed market.
We admit that the idea of this whole raffles thing is intriguing to say the least. However, it is easy to get stung financially if preparations are ignored and no legal counsel is considered.
Perhaps we will see more and more property raffles around the world to spice up a slow property market? Time will tell.