With the subprime bust, the housing market fiasco, the credit squeeze, and the recession in the US, most newly built condos there are sitting vacant. On the one hand condo hotel managers bite their fingernails on how to ensure the fillability of the condos they maintain and advertize. On the other, so do potential condo buyers.
The latter simply cannot make a decision on the buying of condo apartments that give them the most profitability because prices are still in a falling spiral. They want to wait before the falling tendency makes way for the opposite trend, an upward rise in condo prices, so that they can make a winning investment move. However, the wait could be a long one before the US federal government's massive funding inputs into the economy boost the housing industry from its current doldrums.
At such a time, it appears renting out condo apartments to potential buyers can spur the condo industry into activity again. The managers of condo hotels can get relief by ensuring that their investment does not go waste. It will provide them income by way of much needed rental money and ensure that condo hotels again stay full.
Potential buyers can also use the interim after renting the specific condo apartments they wish to buy to assess what staying there means to them. It can provide them a taste of residence there as well as well as of the amenities they get to use. Not to speak of the wonderful view of the city they obtain from the high rise tower condo apartment that they get to stay in.
Considering that currently new condo apartments are mostly empty, the condo hotel managers and the equity providers will do well to take a collective decision to keep rental prices competitive to make an inrush of potential condo buyers possible.
Condo boomers are natural renters of condo apartments, but being a highly intelligent community they are wary of market conditions and the investment climate. You need to dangle the carrot of competitive rentals in front of them before they will bite and fill the condos you so desperately want to fill up. They need time to assess the situation and get a beforetaste of residence in the specific condo apartment they would love to buy later.
They want to wait till the housing credit loan taking opportunities and the modified rules for the same that surely will be in place in the next six months or so are made available to them. After the flux ends, they can decide on the buy decision in a more appropriate and favorable frame of mind. Definitely you need to consider that condo boomers have the right to buy affordable housing. Unless the investment climate is not stable, they will not step out and make a move into condo apartments.