[Advertisement feature by Raffle House]
Raffle House, the property prize competition website currently raising on Seedrs, seeks to give those with less prospects of getting onto the property ladder a chance to do so, mortgage and Stamp Duty free. For many, owning a home is out of reach due to high costs and constrained supply resulting in an inaccessible and stagnant housing market. With only 27% of 20-35 year-olds owning their home, and only 50% of the total London population owning theirs, Raffle House is able to tap into a significant market opportunity.
Raffle House showcases extremely desirable properties in the price range of £350,000-£650,000 in highly populated UK cities, and offers them as prizes to its customers. Customers select how many £5 tickets they want to purchase in a particular draw, pay the upfront fee and then answer a multiple choice question. If they answer correctly, they will be entered into the draw and have a chance of winning the property.
Since its launch on April 19, 2018, Raffle House has generated over £30,000 revenue with little advertising, and, as of June 1, boasts over 4,000 users signed up and over 2,400 customers. Raffle House also offers cash runner-up prizes and donates 5% of all ticket sales revenue to one of three homelessness charities, as chosen by its customers. In the future, Raffle House plans to launch Rent Raffle competitions in an effort to alleviate the pains of Generation Rent.
Relative to the number of tickets sold, the Raffle House model sees the average odds of winning a property at about 1 in 175,000, which is about 800x better than winning the Euromillions jackpot. Its model is based on how many tickets it aims to sell versus how many entrants get the answer right – only correct answers are considered in the draw.
For many, it is quite simply a dream to own a home. Property prize competitions are a relatively new industry in the UK, therefore Raffle House only currently identifies three main competitors. Their models are all slightly different with a combination of free-play, different ticket costs, less desirable property in the same property price bracket or mansions/huge cash prizes in higher price brackets, and higher ticket sales requirements. Raffle House is designed to overcome the shortcomings of its competitors and improve upon their successes.
To Raffle House’s knowledge, no single property prize competition website has awarded a property as a prize. It intends to be the first in UK history.
If you’d like to find out more about Raffle House, visit their Seedrs campaign page today.
Investing in startups involves risks, including loss of capital, illiquidity, lack of dividends and dilution, and it should be done only as part of a diversified portfolio. This blog post has been approved as a financial promotion by Seedrs Limited.