– 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.)
– vreaa
Vancouver Real Estate Anecdote Archive 
Supposedly this 10% “interest income” is taxable? I’d much rather to have a 2-ish% discount on tax consideration. (Of course I’d much much rather to have a 40% discount after price collapses).
Can you pay cash for the entire amount upon signing?
The astute will note, as vreaa alludes, this is a de facto price drop.
From the developer:
*The Residences at WEST False Creek Vancouver condos are now offering 10% INTEREST on purchasers deposits until completion! This SPECIAL PROMO is only for a limited time until December 1st, 2012 -OR- the first 20 sales. As of beginning of November, 8 lucky homebuyers have already taken advantage of this special 10% Interest Promo, leaving only 12 more homes that are eligible for this incentive. On a typical 2 bedroom around $600k at The Residences at WEST False Creek Vancouver condos, the interest earned would be $18,000 – $20,000 which is given as a credit and reduced from the purchase price! On the smaller homes, the interest would be $7500+.
With the amount of inventory coming online in False Creek over the next year (plus still lots of empties in the OV) this is just the tip of the iceberg.
I took a stroll around and counted 8 tower cranes in a 4 block radius, plus 4 empty lots with ‘coming soon’ signs. All these developers are going to have to compete with each other and price is their only option because they all look the exact same to me…ugly.
Hot off the press.
10-10-10 For the Next 10
It has been a very busy month at Silver, and we are thrilled to say with our 10-10-10 Program we sold 10 homes in the last month. Since we saw such an increase in traffic, we decided to extend the promotion for the next 10 homes throughout November.
Here are the details:
10% Deposit
Until November 30th, 2012, purchase a new home at Silver with only a 10% deposit.*
$10,000 Decorating Allowance
When you purchase a 2-bedroom home at Silver, you will receive a $10,000 decorating allowance to put toward furnishing your new home. Purchase a 1-bedroom home and receive a $5,000 decorating allowance.*
$10,000 Off The Top Discount
Purchase a 2-bedroom home at Silver and receive $10,000 off the purchase price. Purchase 1-bedroom home and receive $5,000 off the purchase price.*
Are people really motivated by these tiny incentives? Pay $600k and get a discount of $18k – $20k (3% – 3.3%)
Stupid.
One thing that isn’t stupid is the top few condo marketing firms. They’d come up with a bigger number if they had to, and they’d use a smaller number if they could. It works for cars ($1,000 – $1,500 factory incentives are common, bigger ones only required for real dogs), garments (preprinted “MSRP” or “Compare At” tags).
Remember, the $600k number is fanciful for most people, who don’t bother to calculate how long it’d take to save, but $20k is a tangible number — the price of a car, or your downpayment which you DID save.
Ah, southeast False Creek. Home to Burger King, McDonalds, dumpy industrial buildings, and plenty o’ traffic. Where do I sign?
Get in now while the getting is good. I hear it’s going to be the next Whalley.
>I hear it’s going to be the next Whalley.
Thanks. That actually was a laugh out loud and not just the usual smirk that gets an LOL tag.
One used to be solicited by hookers at 1st and Quebec, not it’s Realtors!!
or ‘now’…
I’m not sure who the bigger whore is?
I only like good marketing when it involves Don Draper, smoking, lots of sex and obligatory alcoholic beverages.
http://www.vancouversun.com/business/Realtors+break+drinks+limo+crawling+real+estate+market/7556108/story.html
This is getting disgusting, now realtors are getting clients drunk to soften them up, and $20 to boot!:
“On the crib crawl, the owner or listing agent will serve food and drinks at each apartment, and try to persuade the buyers why they should make an offer on the property”
Article comment from Jordan McNab:
“ha! fair enough. You will definitely get more then $20 worth of food, drinks, goodtimes, and entertainment. If you decide to buy one of the properties I’ll give you your $20 back. haha!”
Very Professional…haha!
“Novel idea for an open house. Party bus tour meets house shopping. Fun story.”
Adrienne Tanner · Deputy Managing Editor, Content at Vancouver Sun