WA Buying or investing in Madeley (WA)

Just wondering what your thoughts were on Madeley for investment potential?

https://www.realestate.com.au/property/24-hollins-bend-madeley-wa-6065

Have a relative selling this property in the low 600Ks, is this priced well? any feedback that can help the seller?

Estimated rent $500 per week, so if purchased for say $610K the rental yield is 4% so not bad..

 

To answer your initial question in a couple of words, "pretty awful" imo.

Are you considering buying it for investment, or just trying to help your friend?

 

Whats your reasoning?

 

Well what's special about Madeley exactly? Its not exactly a cheap area, yet its fairly far out - its slightly awkward to get to from the freeway - there's developable land not too far away - and its not beachside of the freeday either.

Why would the area have better than average capital growth?

 

I see what you mean from an investment perspective, but it's a nice liveable family area

 

Fair enough, but so are a lot of other areas for 600k imo.

 

Agree. Why not go into sorento/Hillary’s for that money.
Similar location but closer to the beach.

 

Not worth any where near 610k, way over priced. Research the property thoroughly.

 

What you reckon it should be priced at?

 

Sorry it's priced at 595K not 610K

Couple of years ago it was valued at 670K by the bank..

 

Hillarys maybe, something old but by the beach but definitely not Sorrento for low 600K's

 

Just down the road from $580k
reiwa.com - 39 Hollins Bend, Madeley

 

They have wanneroo road behind them and been on the market for quite some time

 

That's something you need to decide. I would be looking at recent sales in the area, past sales figures and a new build of similar specifications. Nothing high spec about that place though. Need to take land price into consideration as well as land size.

 

There is no outstanding features. Being close to Wanneroo Rd, no good school catchment, a bit far from train station, will hold it back. The best time to sell a property like this is during a boom. If they want to sell now they need to drop price to make it desirable.

 

.
Madeley and Darch are highly desirable areas.
Reality is, if you consider areas such as Butler & Alkimos, Madeley is now consider close to the city. It has easy access to the Freeway, Wanneroo rd, Hepburn ave, and Gangara rd. Plus easy access to two train stations.
Its a young area so the houses are modern and large. Greenwood and Kingsley have similar location benefits, yet the houses are much older. I could point you to a 50yr old toxic ******** in Greenwood that just sold for over $500k.

There is very little land available in the area, and what is left is generally being cut down to around 250sqm.

The downside to this area as an investment, is that you are paying a premium for current desirability, and also a premium for newish houses which will only depreciate. If you are looking for somewhere to live, Madeley is great. But I think there are better ares for investment.

I'd also say that it would have to be something very special to fetch $610k. Somewhere around mid 5's would be more realistic.

 

Mid 500s is realistic. Hard to see why it should sell for more than the $550K it sold for in 2012, the current market is weaker than it was back then plus the bathrooms and kitchen are now more tired and outdated.