– from the website promoting ‘The residences at West’ [Nov 2012], a development that we are told “will change the face of Vancouver’s Southeast False Creek forever”.
[hat-tip to Landbaron]
Recently we featured a post discussing some of the ways in which RE marketers are promoting their Vancouver product [‘Sellers Offer Incentives – Cars, Cash, ‘Price Drop Guarantees’, VREAA, 9 Nov 2012].
Hats-off to the marketers with the idea above. Such superb sleight of hand.
Prospective buyers are attracted but also distracted by the ‘earn 10%’ (“Such a good return!”), while the sting is that they agree to buy a condo at 2-3 times its fundamental value (about the same overvaluation as all other Vancouver RE).
Note the use of the ‘good’ word “earn” – wholesome; hard work; prudence.
Furthermore, we may be wrong, but judging by the ad our hunch is that the ‘10% interest’ you earn is 10% total until completion, and not 10% per annum until completion. In other words, 10% total rather than the 21% total that is implied by the overall impression of “10% interest” over two years. (If we’re incorrect on this, and anybody has precise info, let us know.)