CONCHO – if rents are declining and/or expected to decline, how will it benefit any investor to flood the market w/rentals? Is that already happening and maybe explaining why rents have declined some?
I think they will do it slowly like they are handling their sales, they won’t flood the market. Also if they get enough bailout money then the rents are just gravy; they might not like it if oversupply pushed rents down temporarily because they keep those assets until it makes sense to sell them later. The bailout money will give the holders of these toxic doo-doo mortgage assets heavily discounted properties to do with as they wish. They might sell some, they might rent some, who knows what they’ll do. One thing is certain — bailout money will remove the pressure on them, at least temporarily, so that they can avoid taking drastic measures. Of course little guys like you and me are hoping that they’ll be forced to, but then again, the laws are not made for little guys.