http://propertysoul.com/2015/03/11/new-launch-brochure/
How to read a new launch brochure
March 11, 2015
The following article is an excerpt from my book No B.S. Guide to Property Investment, a bestseller at Kinokuniya and Times bookstores.
In 2002, I went for a flat viewing in a commercial and residential mixed development off Balestier Road. It was a three-bedroom apartment, nicely renovated and very well-kept.
But I could easily tell why the owner had difficulty selling it, even when he was asking well below market value: The unit is too close to the road with heavy traffic. It is in front of a busy Chinese temple. Many locals dislike staying in a mixed development …
I could still remember vividly how the owner showed me the original sales brochure with great enthusiasm. He flipped through all the pages to share with me the beautiful drawings inside.
I was amazed that the owner could keep the brochure in such perfect condition after so many years. And how could he still treat the sales collateral like a bible after the purchase of a far from perfect home?
After an enjoyable run-through the brochure, the owner finally closed it and sighed, “Isn’t that beautiful? And that is exactly why we bought it at such a high price at that time!”
Artists’ Impression
When you are appreciating the drawings in a property sales brochure, do you see the line of fine print under the pictures that says ‘artist’s impression’?
You are expected to imagine what you are buying from an artist’s perspective. So don’t take any image in a sales brochure too seriously. It is just art to help spur your imagination.
To capture buyers’ imagination, sales brochures distributed during launch all come with nice drawings of the building’s exterior and the surrounding landscape. Below are some common finds:
1. A must-have includes infinite blue sky, lush greenery, a beautiful beach or breathtaking sea view. The development stands out prominently in the area, with adjacent buildings conveniently shortened or erased to flaunt its stylish profile.
2. The actual site may be in the middle of a cross junction. But the developer gives this an interesting twist to make the project appear in the midst of a jungle. In reality, blocks can’t even be built without cutting all the trees originally found at the site.
3. Nuisances or objects with bad fengshui like cemeteries, slums, petrol stations, power plants, etc. adjacent to the site are suspiciously hidden. When asked, a safe answer is that the government has plans to relocate it. They will be gone when the project is ready for occupation.
4. Some facilities are drawn for illustration only. For instance, a swimming pool is included to create a relaxing ambience. Never mind that the actual one might be too small for anyone to swim there.
Location, location, location
Any promotional material of a new project won’t be complete without the mention of a convenient location accessible to all amenities. It is a stone’s throw away from public transportation, good schools, shopping malls and nice restaurants. The name of a train station is automatically included in the street map. Just like how the iconic Twin Towers will never be found missing in any luxury condominium ad in Kuala Lumpur.
But misunderstandings are commonly found, though not limited to, the following areas:
1. The location of the sales gallery is accessible, but the actual site isn’t.
2. The advertisement says it is just eight minutes away from the train station. But it doesn’t specify whether it is an eight minutes’ walk, run or drive.
3. It highlights the proximity to ‘two’ train stations. The reason for the bonus of ‘two’ is that the development is in between two stations, but not near to either one of them.
If the location is really out of nowhere, for the convenience of the residents, the developer may promise the provision of free shuttle buses running at regular intervals to the nearest train station.
This ‘freebie’ is most likely available for the first year. Gradually, the frequency drops over time and each ride costs a small fee — until one day the management decides to drop the service altogether because of low usage.
The promise of the future
Besides selling a dream, developers are selling buyers the future. With the slightest hint from a land use plan or redevelopment plan, the developer is quick to point out that the location is near to the new CBD, or the district is going to be the future hub of something critical.
Remember: As a property investor, it is your job to check with the relevant government department to confirm the scale and timeline of any future development.
That ‘something big’ may only be a preliminary proposal. And sometimes even a government plan can be changed under unforeseen circumstances. At the end of the day, you can’t blame anyone if the plan doesn’t materialize.
You can’t rely on images you see in a sales brochure. They are for illustration only.
You can’t be serious about things put up in a showflat. They are there for display only.
You can’t believe in everything a sales agent says. They are for your reference only.
You can learn more about the hidden truths of new launch at the How to Buy Good Quality Properties 1-Day Workshop on March 21.
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Originally Posted by vip
