DessyrayMember@dessyrayJoin Date: 2009Post Count: 3mummyto3 wrote:Hi Everyone,
Like a few other comments I have seen I'd also like also like to say how valuable I have found this forum! and how much I appreciate people taking the time to contribute, thanks very much
I was also hoping to continue this thread about investing in the bowen basin. We're hoping to diversify our portfolio a bit and are particularly interested in Dysart. I'm not all that keen on Moranbah from what I've seen of the market and also the possibilty of the airport upgrade BUT the possibility of BMA building accommodation in Dysart also makes me a bit hesitant. So I just wanted to see how people were feeling since the last post? are everyones rental properties tenanted? have there been any more job losses? would you feel nervous purchasing a property without an exisiting rental agreement? and what kind of property do you think would be the best purchase? I was thinking of highset with a covered entertainment area, 3+beds, good bathroom, fenced and maybe a shed?
Thats probably enough questions for now, I was particularly hoping to hear from Dessyray???
thanks in advance!!!
just let me know your email and we can talk privately if you like..I haven't been on for some time and get busy so private emailing would work better for me…Lots of interesting things are happening in dysart at the moment that all points to another boom.. Look forward to chatting to youBluegrassParticipant@bluegrassJoin Date: 2009Post Count: 73
We have been away for a while, but the News is only getting better, Bowen is warming and getting hotter!
We have sold five house and land in the last two weeks.
The sale price was $408,000 and HTW valued to the dollar as and investmetn property.
The developer is a special person who cares about a positive result for his land
BluegrasscoalstarParticipant@coalstarJoin Date: 2007Post Count: 122Matt007 wrote:Anyone know what demand/prospects are like in Blackwater at the moment? Curious to know who's buying and renting etc…
I just signed a new weekly lease @ $450 a week for 12 months, 3 bed highset. I took less rent for 12mnths security.nonaMember@nonaJoin Date: 2010Post Count: 4
Just came across this thread and thought I'd add my 2 cents worth. I live in Moranbah and work in Mgmt at one of the coal mines so have a pretty good idea of what is happening with coal prices and demand etc. I can definitely say Moranbah is heating up again. We have tried to buy several properties only to contend with multiple offers or the property selling to the first offer with a few hours of listing. We inspected a house at 4:45pm, went to inspect another at 6pm, put an offer on the first at 6:30 only to be told it had already sold! Well priced houses (early $400k for tidy 4×1's, late 300k for 3×1's untenanted) are being snapped up in the first day or so. The new land estate released by council has also sold out. There is still plenty of supply around for rentals which is keeping yields at approx 7-8% on new leases. Houses are moving in anticipation of Contractors coming back into town early 2011 for Construction works on new mines. I can't speak for other mining towns as I haven't looked at them- I do know Dysart is performing on par with Moranbah for yields, not sure if stock is moving there or not though.
Beware of Real Estate agents- I was told a house would be listed at $430k, and rent appraisal of $800pw. The agent then renegged on the $430k (no paper work through from Vendor) due to our interest on the property. I later found it advertised for rent at $650pw. Case of buyer beware.hadiMember@hadiJoin Date: 2008Post Count: 5
Hi Nona thanks for the industry insights to whats happening…..
I’ve come across several articles from the Daily Mercury that show some real positive signs for the future of the region.
Headline: Boom Time is Back!
by Clare Chapman
According to a recent manpower survey hiring across the mining and construction sector is forecasted to increase in Q1 of 2010 with a projected growth of 20%. And there is indications of skills shortages with specialized trades people in high demand such as experienced hydraulic fitters and electrical control systems engineers (would be interesting to know what aspect of mining these positions fall into).
Mining Logic managing director Glen George who provide specialized electrical and mechanical trades services to the underground coal mining industry said that they have work locked in from Jan to June and an extra 30 staff would be required.
Date: Dec 30
Headline: New Jobs in Pipeline
by Clare Chapman
She writes of the vast amounts of natural gas that exists under Moranbah and its surrounding area, and that billions of dollars will be pumped into the area over the next few years creating hundreds of jobs in the region. A 450KM pipeline from Moranbah to Gladstone is on the cards. Exactly how much gas is there? 35,000 petajoules has been found in the early stages of a $300million exploration program by Arrow Energy. For the record 1 petajoule = 29million liters of petrol. (i don’t know accurate that is but it seems like a hell of allot to me). The questions is i guess is it all commercially viable for gas production.munchineMember@munchineJoin Date: 2010Post Count: 1
We are thinking of investing in Dysart. The agent told us that the house needs some work, 2 x Air Conditioners, Floor boards to be done etc…
Has anyone had experience with the local trade? Do they have a monopoly and charge double?
Any thoughts is appreciated.DaedalusMember@daedalusJoin Date: 2007Post Count: 140
Yes, the locals are expensive – but that's what happens in a micro-economy where everything (including rents) are higher than everywhere else.
It might be a bit cheaper than it was because Dysart has been quiet for a while. I'd get some quotes from Mackay installers for aircon, because the units will probably come from there anyway.
When I need to do major maintenance on my place in Dysart, I usually find it cheaper to fly up and do it myself.
Daedalus.annasplanetParticipant@annasplanetJoin Date: 2010Post Count: 2
Thanks Daedalus for your amazing blog – I just happened to stumble upon it as we may have to move to Dysart area soon from NZ. Very informative – and I have a few questions… we have 3 golden retrievers, in general do rental property owners look favourably on pets – ours are mature and soft natured, no chewing, scratching etc… and also, is the residential area free of snakes and if not, what type and how can they be eliminated/managed from the area we are in… I am worried that our dogs will think they are a huge joke and try to "retrieve"them…
How far is Dysart from the coast?
Thanks for any help/information you might be able to give us.
Maybe I can help with your questions, as an investor with property who has visited there.
Dysart is maybe 2 1/2 hours from the coast, by car.
I imagine landlords will generally be OK about pets, maybe just put on the lease for you to clean carpets on leaving. Will depend. There are less houses for rent there now than have been advertised for the last year or more. Not sure how long your dogs will have to be quarantined by customs when you move.
Snakes (I understand you don't have them in NZ!) generally prefer to steer clear of people and dogs. If you live on the edge of town eg backing onto open ground that is not mowed often, that could be a problem. If you live among other houses and keep you grass mowed and no junk eg old sheets of tin on the ground, you should be OK. Some Aussie dogs who live on the land are very good at killing snakes, maybe that goes with the breed of dog. (Not sure how they get the skill!)
DaedalusMember@daedalusJoin Date: 2007Post Count: 140
It's hard to generalise about pets but my tenants have pets (outside dogs). A lot of places in Dysart are high set, so the dogs can be 'outside' but still under cover.
I haven't heard of snakes being a problem – I've never even considered it before…
Dysart is about 3 hours from the coast.
All the best,
I lived and worked in the Dysart and Moranbah area for years, the best fun you are going to have with your dogs is keeping them clean. They don’t get much rain, so grass in your yard is a premium. Unfortunately the dirt is red and doesn’t mix well with golden retrievers.
I am a PM servicing Mackay and the mining areas, as far as pets go I would have to say that if two applications were even in every way and one had pets, I would present both to the vendor, but more often than not they go with the no pets option.
There is a lot of demand for all areas in the bowen basin at the moment, very strong signs for coal and with the missing link under construction and due for completion in 2012 the immediate future seems secure.
If there are any other questions, feel free to contact me. But I think if you scroll back through this very good thread you will find the answer to almost every question. This is possibly the best resource available to Bowen Basin investors I have ever seen!
Thank you to Daedalus for your insights and for sharing them.annasplanetParticipant@annasplanetJoin Date: 2010Post Count: 2
thank you so much for your comments which have been very helpful and provide a realistic insight for us.
On a slightly different note, has anyone seen the new RPData review that it might be time to look into investing in mining towns?
Due to prices and demand improving, they suggest jobs will increase and hence there will be a squeeze for rental property availability. At current prices and rents, they say they are a very good return. They discuss the risks of mining town property investing, but feel prospects are promising.
(My summary, not in their words.)
Moranbah, Dysart and Clermont all mentioned.
is the link to the article, see for yourself.
Moranbah and Dysart are the pick due to their close vicinity to mines in the area.
Moranbah in my opinion is the better of the two, it services the following mines: Goonyella/Riverside, Moranbah North, Peak Downs, Millenium/Poitrel, Carborough Downs, Burton Downs, Isaac Plains, Macarthur Coal, Moorvale. Plus there are new applications for mines in areas surrounding Moranbah. So as you can see there are plenty of employees looking for accommodation. Moranbah has great facilities, shopping, schools, swimming pool and the list goes on.
Dysart is the smaller of the two, but still has plenty to offer. Close vicinity to Saraji, Norwich Park, Lake Vermont, German Creek. Facilities aren’t quite as good as Moranbah but things are on the improve.
With the great returns they are both very good options for investment. Middlemount, Clermont, Tieri and the likes are all alot smaller and have residents working at only 1 or 2 mines.
With the increase exposure to safety, many families are choosing the lifestyle of coast living in say Mackay and bus companies transport the mine employess to and from work. This is a trend for the coal mines in the Goonyella Coal chain. Similar things seem to be happening for the Blackwater coal chain with people choosing areas around Rockhampton and commuting to their mine of choice.
Everything will be fine as long as there is coal, and nobody knows how long that is going to be, but I wouldn’t want to own a property in one of these towns when that day comes when the coal runs out or the demand/need does.coalstarParticipant@coalstarJoin Date: 2007Post Count: 122
there is about 400 years of coal supply and 400+ of gas reserves. These towns aren’t going anywhereJT7Member@jt7Join Date: 2010Post Count: 286
Anyone got any thoughts about whats happening in Emerald at the moment?
Two new Natural Gas mines just approved by the Government late this week in the Surat Basin, might be worth a better look with the coal expansion going on down there as well.BuilderBobParticipant@builderbobJoin Date: 2008Post Count: 131
I cannot provide much info on Blackwater apart from there are some large Power upgrades being done in the area and during the next 2yrs rentals prices will increase due to the increased labour required in the area.
Some of the big concerns at the moment is the fly-in/fly-out because once BMA gets that, it will be the precedent that other companies are waiting for.