All Topics / Help Needed! / Bowen Basin QLD Mining Towns – Opinion on offer

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  • Profile photo of BuilderBobBuilderBob
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    @builderbob
    Join Date: 2008
    Post Count: 131

    Marian Haulage have come a long way since their big starter contract when we built North Goonyella mine some 17yrs ago, they had a pile of broken down old trucks hired out at some crazy rate.
    When I was out at Vermont, Marian Haulage had about 30 large dumpers parked up as they lost the contract for the road into Vermont mine. Thiess ended up calling in their own men and machines to complete the entry road from what I understand.
    It turned out more then 1/2 of the dumpers Marian Haulage used were not safe or failed to run, so possibly that might play a big part in why they lost out.

    Below is a article posted on abc news

    http://www.abc.net.au/news/stories/2008/10/30/2405668.htm

    Union urges end to fly-in, fly-out at 4 mines

    Posted Thu Oct 30, 2008 1:34pm AEDT
    The coal mining union says it is concerned that BMA's new fly-in, fly-out practice on the Queensland Central Highlands could become more widespread.
    The Construction, Forestry, Mining and Energy Union (CFMEU) is calling for an immediate end to the practice at four coal mines near Moranbah and Dysart.
    The union's executive vice-president, Stuart Vaccaneo, says flying workers in and out on the same day would be detrimental to local communities.
    "If this becomes widespread obviously there wouldn't be as much call for local businesses in town," he said.
    "Also for the community itself, these mining companies generate hundreds of millions of dollars of profit out of these communities each year.
    "They start turning their backs on these communities and don't look at having affordable housing in town, these communities are going to stagnate and potentially even go backwards.
    But BMA says it treats the safety of its workers as the highest priority, and flying workers in and out daily ensures they are not driving on the road before and after a shift.
    The company says it has had to increase staffing at the Norwich Park, Saraji, Goonyella-Riverside and Peak Downs Mines to meet operational requirements for contractors.

    Profile photo of niniebearniniebear
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    @niniebear
    Join Date: 2003
    Post Count: 19

    Hi all,

    Thank you for all your effort and contributions. I haven't checked into this forum for a very long time and now I wonder why not.
    I bought a house in Dysart in Dec 07 with the idea of building a second dwellng at the back. After 6 months of working with a town planner from Rocky, I just found out this week that it had been rejected by council. The primary reason being lack of car parking.

    The existing 4 bedroom house has a carport and a long driveway, while the proposed 3 bedroom new dwelling will also have a carport and a driveway. unfortunately, council didn't think that these 4 carspaces were enough. They insisted that 7 formal carparking spots be created.

    I'm now back to the drawing board, but I was wondering if either Builder Bob or Daedalus or anyone in the forum would know someone in the council I could speak to directly.

    It just doesn't make sense to reject a well-planned, well- placed, sorely needed brand new house in a market that is so competitive it will pay $1100 per week for an old 3 bedroom house with concrete floors.
    And if they council is interested in abating the trend for fly-in and fly-out workers, they should encourage well-thought out development in the existing residential area.

    Does anybody have any comment? Maybe I'm missing something.

    On another note, Builder Bob, do you build houses from scratch?

    Thank you for your time and thoughts.

    Ninie

    Profile photo of esamesam
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    @esam
    Join Date: 2008
    Post Count: 5

    Hi Ninie

    I think many investors would love to get more information on building dual occupancies in Dysart. I also have a house there and would welcome any recommendations of builders.

    Perhaps it could be cheaper if there were a group of us making the same request to a building company…?

    Esam

    Profile photo of BuilderBobBuilderBob
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    @builderbob
    Join Date: 2008
    Post Count: 131

    Hi
    Yes I do build from scratch but I honestly cannot recommend any builders that are not to busy.
    Distance is the problem , unless there are multi dwellings you will most likely have trouble getting some one out there at a reasonable cost.
    I'm currently tied up with other big projects and developers, sorry to be of little help.

    As for council town planner did you work directly with them or use some one else?
    I found if you work directly with them they like to be entertained by burning up your money  and making you jump through un-needed hoops.
    What is the guy you dealt with in Rocky,?  there could be a conflict of interest. ..lol
    I cannot go into detail but there is a town planner from Rocky who is tied up with his brother who are in Dysart and Collinsville passing their own work and knocking others back. They some how allow their own dodgy re-locates and developments pass while any one else is either knocked back or gives up.

    Profile photo of sceddscedd
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    @scedd
    Join Date: 2007
    Post Count: 15

    i have been watching this topic for a while, waiting to see if anyone has identified the next town to go off with mining.
    For my 2 bobs worth , i think it will be Wandoan.
    With coal seam gas, Cockatoo mine, Xstrata's new mine (the biggest in OZ), the missing link railway & the Nathan dam,
    this place will have to start booming.
    Has anyone got any comments or opinions.
    Thanks,
    Steve

    Profile photo of niniebearniniebear
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    @niniebear
    Join Date: 2003
    Post Count: 19

    Hi All,
    Thanks for your feedback. Sorry for my delayed response.

    Builder Bob, Thanks for your input. I used a Town planner from a company called GSPC. The planner himself was good to work with, but now he's left and so now I have to start from scratch with the other planners. The current planner I'm talking to now is Sunil from GSPC. Do you have any advice?
    The councillor was Kevin Moran. The indication I had throughout the process was that it was quite positive and that council was not opposed to these duplex developments. So, the rejection by council has come as quite a surprise and disappointment. I'm trying to think of ways to appeal the decision.

    Any suggestions anyone?

    Esam, I was planning to use Halley Homes to build the 2nd dwelling. My understanding is that they built all the BMA homes in Dysart so they are not unfamiliar with the process and location. You can check them out at halleyhomes.com.au. As expected, the prices are not cheap but it all depends on which design you choose. The cost of transporting them also represents a huge chunk of overall cost, but I these are the cost of doing business.

    Hi Steve, I'll check out Wandoan, but I heard that Xstrata was hit quite hard by the credit squeeze?

    Thank you all.
    Ninie

    Profile photo of crowcrow
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    @crow
    Join Date: 2008
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    Pepsimax wrote:
    HI Everyone,
    Can anyone tell me a bit about Blackwater?
    We bought a property there 18 months ago,
    it's going quite well, but we haven't been up there to visit it yet.
    Thanks
    Jude

    Profile photo of crowcrow
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    @crow
    Join Date: 2008
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    rang  pm today
                               blackwater is firing rent r going through the roof . $550-800 for a 3-4bedroom.(note the rent as of moranbah &dysart  but good start) got hit bad by the infrastructure thing but it is coming back .it's got the good stuff and alot of it .power is what everyone will want even if the economy slows.and this is from a man big in to  iron ore.

    Profile photo of newbi2newbi2
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    @newbi2
    Join Date: 2008
    Post Count: 227

    Hi Steve,

    I looked at Wandoan just over 12 months ago, with the same thought as you. I got the feeling that the mines have learnt this time around as most of the land for sale had already been purchased by the mines themselves and when I spoke to a few locals, the feeling was the mine was going to build their own workers accomodations. I dont know if that has changed at all in the last year. Be interesting to see if anyone has any more recent info.

    Mick

    Profile photo of sceddscedd
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    @scedd
    Join Date: 2007
    Post Count: 15
    newbi2 wrote:
    Hi Steve,

    I looked at Wandoan just over 12 months ago, with the same thought as you. I got the feeling that the mines have learnt this time around as most of the land for sale had already been purchased by the mines themselves and when I spoke to a few locals, the feeling was the mine was going to build their own workers accomodations. I dont know if that has changed at all in the last year. Be interesting to see if anyone has any more recent info.

    Mick

    I looked at it a different way to you.
    My thoughts are that the miners camps will be for single men.
    The families, managers and those who dont like camp life will want to live in town, as well as the support industries.
    With the coal seam gas coming of age, i dont think the town will need Xstrata to boom anymore.
    I think Arrow energy may be enough, with the railway and water pipeline.
    Anyone else?

    Profile photo of maurice Levinemaurice Levine
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    @maurice-levine
    Join Date: 2008
    Post Count: 2

    Hi Guys,
    I am new to your forum. There seems to be so many differing opinions on the advantages and risks associated with buying in the mining towns.
    I have two properties that I am currently considering:
    1 is in Dysart – a 4 Bedroom going for $485,000 with a lease in place for $1,000 / week.
    2nd is in Blackwater – a 3 Bedder going for $285,000 with a lease in place for $550 / week.

    I am interested in building a portfolio of positively geared properties and I am less concerned with capital growth.
    Obviously, I appreciate that mining towns are risky.
    I was curious to get a read on how risky.
    Even with a down turn in demand for steel, does the consensus in this forum really feel that mines will be shut down, be reduced, be closed off.
    Personally, I cannot see it. As I understand it, investments in the mines continue to be made by large resource companies.
    Do the mining companies have it wrong? Is it a big fat mistake to be too optimistic about the need for coal across the region?

    Profile photo of esamesam
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    @esam
    Join Date: 2008
    Post Count: 5

    Hi Ninie

    Thank you for letting me know about your builder's name. I am looking at kit homes (which may be cheaper) for Dysart and here are the links I will be checking out (for anyone who may be interested):

    http://www.nshq.com.au/home.aspx

    http://www.askhomes.com.au/

    http://www.nationalbuilders.com.au/our-homes.php?gclid=CK2JktzE5ZYCFRxNagod7SuPPA

    http://www.homefab.com.au/hf2007/homefab_plans_and_prices.htm

    http://www.kit-homes.com.au/homes.htm

    http://www.ozkithomes.com.au/kit-homes-4bedroom.php

    http://www.shedco.com.au/sheds/kit-homes.htm

    http://www.ubuild.com.au/3S-of-kit-homes.html

    It's a slow process but I will let you know if I have any success and please let me know your thoughts.
    Cheers
    Esam

    Profile photo of coalstarcoalstar
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    @coalstar
    Join Date: 2007
    Post Count: 122
    maurice Levine wrote:
    Hi Guys, I am new to your forum. There seems to be so many differing opinions on the advantages and risks associated with buying in the mining towns. I have two properties that I am currently considering: 1 is in Dysart – a 4 Bedroom going for $485,000 with a lease in place for $1,000 / week. 2nd is in Blackwater – a 3 Bedder going for $285,000 with a lease in place for $550 / week. I am interested in building a portfolio of positively geared properties and I am less concerned with capital growth. Obviously, I appreciate that mining towns are risky. I was curious to get a read on how risky. Even with a down turn in demand for steel, does the consensus in this forum really feel that mines will be shut down, be reduced, be closed off. Personally, I cannot see it. As I understand it, investments in the mines continue to be made by large resource companies. Do the mining companies have it wrong? Is it a big fat mistake to be too optimistic about the need for coal across the region?

    personally i would go for Blackwater. try negotiate a better price, small reno to increase your yield. This will imo reduce your risk. Also consider to buy a cheaper Blackwater property, this way your buying in the lower end of the market.

    Profile photo of DaedalusDaedalus
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    @daedalus
    Join Date: 2007
    Post Count: 140
    alani wrote:
    personally i would go for Blackwater. try negotiate a better price, small reno to increase your yield. This will imo reduce your risk. Also consider to buy a cheaper Blackwater property, this way your buying in the lower end of the market.

    At this point, so would I. Blackwater has only just started to pick up after a long stagnation. Dysart is going strong, but has been surging for a while. It makes sense that Blackwater has longer to run. Also, your capital outlay is less, so your risk is less.

    Daedalus

    Profile photo of DaedalusDaedalus
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    @daedalus
    Join Date: 2007
    Post Count: 140
    maurice Levine wrote:
    Hi Guys, I am new to your forum. There seems to be so many differing opinions on the advantages and risks associated with buying in the mining towns. I have two properties that I am currently considering: 1 is in Dysart – a 4 Bedroom going for $485,000 with a lease in place for $1,000 / week. 2nd is in Blackwater – a 3 Bedder going for $285,000 with a lease in place for $550 / week. I am interested in building a portfolio of positively geared properties and I am less concerned with capital growth. Obviously, I appreciate that mining towns are risky. I was curious to get a read on how risky. Even with a down turn in demand for steel, does the consensus in this forum really feel that mines will be shut down, be reduced, be closed off. Personally, I cannot see it. As I understand it, investments in the mines continue to be made by large resource companies. Do the mining companies have it wrong? Is it a big fat mistake to be too optimistic about the need for coal across the region?

    It's hard to imagine now, but this time last year there were a lot of empty houses in Blackwater, and many that sat on the market for months (see my early posts in this thread). It was before this latest round of investment started.

    These things ARE cyclical. When the investment is on, a lot of labour comes in to the area and the need for accomodation increases. Prices rise When the work is done and the mines are in steady state, less accomodation is required. That's when you get me empty houses and falling prices.

    You can do well because the yeilds are better than average IP's, but you need to know what you're in for….

    Hope this helps,

    Daedalus.

    Profile photo of bardonbardon
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    @bardon
    Join Date: 2004
    Post Count: 557

    I work for a company that amongst other things supplies mining services to the coal mining industry.  Our share price is being trashed at the moment and institutional investors are getting out.  The market and analysts are always forward looking and right now coal is not a good sector. The investors have seen majors pull out of projects overnight before and dont wnat to be around if it happens again and the whole NSW and Hunter coal thing is not a strong point either.

    Profile photo of Mick JMick J
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    @mick-j
    Join Date: 2008
    Post Count: 1

    G'day all

    This is my first post on what seems to be a very informative site. I bought houses in Dysart (Dec 07) and Moranbah (March 08) and also very happy with the results on growth and return. I'm currently looking at replacing the kitchen and repainting the exterior of the Dysart property.

    As noted in earlier threads, this is not as simple to have done as you may think. Does anyone have the names/ contact details of reliable tradesmen that operate in Dysart? Appreciate any advice.

    Profile photo of Matt007Matt007
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    @matt007
    Join Date: 2008
    Post Count: 259

    Just as an aside to the commentary on the coal market, I work for a group that provides infrastructure services to the likes of Rio, XStrata etc, and the word from them in the last few weeks has been "we're still pushing ahead with our infrastructure projects and spending because this 'lull' (their words) isn't as bad for Australia as people think and is mostly due to media beatups and panic merchants rather than actual market fundamentals. We (rio etc) missed the last boom and didn't have infrastructure in place and nearly got caught because we couldn't keep up with demand… it's slowed, but not for long and we're not missing the next"…. thats not verbatim but the general gist of the conversation. It wasn't a 'public' presentation either so you couldn't really say it's them pumping it up for appearances sake..at least that's not the impression I got.

    interesting comments given who they came from and the level of research etc they put in before spending money.
    On another note, there's a lot happening in Ayr these days with development approvals for new homes (500 homesites) and industrial.. spill off from Townsville and Bowen… but that little 'ville is getting on the map.

    Profile photo of nhb74nhb74
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    @nhb74
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    Post Count: 11

    Hi,  Just wondering how everyones property in Blackwater is going?  I was lucky and mine didnt get any damage in the storms.  Still rented out a getting a great return.

    Thanks
    Andrew

    Profile photo of fishngymfishngym
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    @fishngym
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    G'day nhb74

    We had pretty minor damage. 2 x smashed windows and a damaged skylight. A friend living out there received 9 smashed windows plus the loss of a patio. The insurance assessor said that he was inspecting alot of houses in the street. I am glad to hear that you pulled up fine.

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