Inducements from Developers:e.g. paying interest only mortgage payments for first 3 y

What's the point of the inducements that developers are giving e.g. paying interest only mortgage payments for first 3 years, throwing in a Punto, rebates etc.

Why can't they just reduce the price? Is anyone being fooled by this rubbish? What's the net effect of not making any capital payments in first 3 years - do the people who fall for this stuff know, or care? It's basically the same as guaranteed rental schemes, but possibly less of a scam?

Re: Inducements from Developers

As an investor I think it is a great idea as it lets me know this developer is under pressure to sell and could well take a low ball offer?

Re: Inducements from Developers

It also acts by keeping the property prices artificially high, thus not scaring would-be buyers who might read headlines such as 'Average house price down 10%'.