An advice website has said that first-time buyers should avoid entering property raffles and instead save up money for a mortgage deposit.
Property raffles should generally be avoided, according to an advice website for first-time property buyers.
These raffles, such as at Win My Bungalow, offer the chance for potential homeowners to buy tickets and, if their number is drawn, they win the home. The website is offering a £570,000 detached chalet, with tickets costing £25. If all the tickets are sold then each has a one in 28,000 chance of winning.
Helen Adams, the managing director of FirstRungNow.com, suggested that, while these sort of offers may be tempting for first-time buyers as the property market continues to struggle, there are "more regular routes to go down". She said: "My advice is for people to save as much money as they can at the moment, rather than gambling it, and to start saving towards a deposit for when they can afford to start moving on to the property ladder."
Ms Adams did suggest that raffles could be the way to go for people with "a little bit of money to risk". However, she stressed that it is vital they make sure that the raffle is being run according to the rule of the law. Legislation for these types of competitions falls under the Gambling Act 2005.
