Jump to content
DOSBODS
  • Welcome to DOSBODS

     

    DOSBODS is free of any advertising.

    Ads are annoying, and - increasingly - advertising companies limit free speech online. DOSBODS Forums are completely free to use. Please create a free account to be able to access all the features of the DOSBODS community. It only takes 20 seconds!

     

Another property raffle...


spunko
 Share

Recommended Posts

These things are going to be commonplace again shortly like in 08/09, as "desperate sellers" won't be able to get the price they think they deserve.

https://www.thisismoney.co.uk/money/news/article-9266547/The-2-5m-prize-draw-dream-home-leave-winner-marooned.html

This one's a bit of a twist on the traditional greedy boomer couple though: it's a US company that bought the house and is now selling raffle entry tickets, under the guise of "giving to charity".

PS: I can't seem to figure out their numbers, it says on their website that they will donate 80% of the net proceeds to the Princes Trust; given that they bought the house for £2.5m, wouldn't this mean they need to make back ~£10m just to cover their costs?

  • Agree 2
  • Lol 1
Link to comment
Share on other sites

https://omaze.co.uk/pages/cotswolds

Quote

We’ll be donating 80% of the net proceeds from the Omaze Million Pound House Draw, Cotswolds, to The Prince’s Trust, helping thousands of young people to get the skills and confidence to find work, train or start a business - at a time when help is needed more than ever.

 

Link to comment
Share on other sites

Frank Hovis
15 minutes ago, spunko said:

PS: I can't seem to figure out their numbers, it says on their website that they will donate 80% of the net proceeds to the Princes Trust; given that they bought the house for £2.5m, wouldn't this mean they need to make back ~£10m just to cover their costs?

Net proceeds would be net of all costs which would include the house.

Sell £3m of tickets, profit say £300k after costs, £240k to charity.

That is their business model: they want to make their turn but the primary aim is a big wedge to charity; they term it "incentivised giving".

It seems like a decent idea generally though they look to have purchased a lemon in this case as the house will be regularly flooded.

I will not be stumping up a tenner to have the joy of wet muddy carpets every other year.

  • Informative 1
  • Lol 1
Link to comment
Share on other sites

Don Coglione
6 minutes ago, Frank Hovis said:

Net proceeds would be net of all costs which would include the house.

Sell £3m of tickets, profit say £300k after costs, £240k to charity.

That is their business model: they want to make their turn but the primary aim is a big wedge to charity; they term it "incentivised giving".

It seems like a decent idea generally though they look to have purchased a lemon in this case as the house will be regularly flooded.

I will not be stumping up a tenner to have the joy of wet muddy carpets every other year.

So when they only sell a million quid's worth of tickets, will the charity owe them £1.2m?

Link to comment
Share on other sites

swiss_democracy_for_all
5 minutes ago, Frank Hovis said:

Net proceeds would be net of all costs which would include the house.

Sell £3m of tickets, profit say £300k after costs, £240k to charity.

That is their business model: they want to make their turn but the primary aim is a big wedge to charity; they term it "incentivised giving".

It seems like a decent idea generally though they look to have purchased a lemon in this case as the house will be regularly flooded.

I will not be stumping up a tenner to have the joy of wet muddy carpets every other year.

What makes you say it will flood? This picture?

I agree the picture makes it look as though the house is below the level of the stream next to it and therefore a definite flood risk, but pictures can be deceiving. 

omaze-cotswolds-rear-elevation-mobile_720x.jpg?v=1612608468

Link to comment
Share on other sites

30 minutes ago, Frank Hovis said:

Net proceeds would be net of all costs which would include the house.

Sell £3m of tickets, profit say £300k after costs, £240k to charity.

That is their business model: they want to make their turn but the primary aim is a big wedge to charity; they term it "incentivised giving".

It seems like a decent idea generally though they look to have purchased a lemon in this case as the house will be regularly flooded.

I will not be stumping up a tenner to have the joy of wet muddy carpets every other year.

I think I am misunderstanding "net" again. But then again their website says this:

 

80% of the net proceeds of the draw will go to the charity, with Omaze being paid 20%. It is expected that approximately £500,000 will be raised for the charity, which would mean Omaze being paid £125,000. Irrespective of sales, Omaze has guaranteed a minimum total payment of £100,000 for the charity. No purchase necessary.

 

Surely if they raised £500k for charity then their profit would be £600k odd?

Link to comment
Share on other sites

swiss_democracy_for_all
33 minutes ago, spunko said:

Ah, yes I'd clicked the Omaze link and not the thisismoney link so hadn't seen all that. But even in that picture you can't see if the water is in the house or not, you'd have to suspect that if a picture of the flooded house was available they'd have posted it. I suspect grumpy disgruntled moaning villagers like the bloke quoted who just happens to live next door to it and didn't want it built.

 

 

 

Link to comment
Share on other sites

Frank Hovis
1 hour ago, Knickerless Turgid said:

So when they only sell a million quid's worth of tickets, will the charity owe them £1.2m?

The charity would get nothing but they'll take a loss.

Edit: per Spunko's post the charity gets a minimum of £100k whatever happens.

Edited by Frank Hovis
Link to comment
Share on other sites

Frank Hovis
52 minutes ago, spunko said:

I think I am misunderstanding "net" again. But then again their website says this:

 

80% of the net proceeds of the draw will go to the charity, with Omaze being paid 20%. It is expected that approximately £500,000 will be raised for the charity, which would mean Omaze being paid £125,000. Irrespective of sales, Omaze has guaranteed a minimum total payment of £100,000 for the charity. No purchase necessary.

 

Surely if they raised £500k for charity then their profit would be £600k odd?

 

I read it as being that they estimate that the profit on the draw in total - and the costs of the draw include buying the house - will be £625k from which the charity will get 80% or £500k and Omaze will get 20% or £125k.

This seems similar to how IIRC Gofundme works where they do all the administration of sponsorship for which they take a percentage. 

To get there they would need to sell £2,500k + £625k + ?£100k (other costs inc. legal, stamp duty) = £3,225k of tickets.

Though that picture of the flood is absolutely damning; especially when backed up with the reported comment in the Mail article.

Its brochure said 'there is a stream running through the grounds which is a charming feature'. Or, as one local put it: 'a raging torrent and major flood risk when it rains'. :D

 

I think they are looking at a loss here but they will have reserves from other profitable draws.  

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 Share

  • Recently Browsing   0 members

    No registered users viewing this page.

×
×
  • Create New...