Property owners are taking a Porque No Los Dos? approach to real estate at the moment straight out of the script of the cute Mexican taco ad.
Instead of either selling their property or leasing it a growing number of residential real estate owners are doing both. They are putting their property on both the ‘for sale’ list and the rental list.
Agents on the northern beaches say with rents flatlined for a couple of years and property prices softening and taking longer to sell many owners are taking a pragmatic ‘Why not have both’ approach.
Tim Mumford, of Stone Real Estate, said this is a new phenomenon as owners hedge their bets and see which option delivers the best result.
“They are taking an x-ray on both the sales and the rental markets before deciding which course to take,” he said.
“This is a decision based on analytics rather than one based on impulsion,” he said.
There are many more northern beaches properties to rent than buy. Dee Why for instance has 258 units on the market but 477 units available to lease. Manly has 195 units for sale and a massive 395 units up for rent.
Even Frenchs Forest has more houses up for rent than sale, with 138 houses up for rent and 128 on the market, according to realestate.com.au.
Joe Iemma, of Doyle Spillane, said Dee Why in particular has a large number of units which owners are looking to sell or rent.
“In the last six months around 500 units hit the market in Dee Why and traditionally half these units would have been bought by investors,” he said.
Rents have plateaued and sales have slowed, he added.
“We are also seeing owners who can’t sell rent out their property rather than take a drop in price,” he said.
Fairly typical is a one-bedroom unit in Dee Why that hasn’t sold and which is now also being offered for rent.
A one-bedroom unit in the Dee Why Grand complex is for sale for $580,000 to $595,000 but it is also being offered for rent for $570 per week. The owner will consider either a sale or a 12 month lease.
Steve Witt, of Belle Property, said people who are selling now are selling for a reason.
“We have a handful of clients who didn’t get the price they were looking for and so renting out the property becomes an option,” he said.