well, i was going to ask from you sir , that what is the largest project held in case of mining because i have heard about the california mines and Queensland mines they have the largest mines in the world ,but i didn't about the biggest project of land mining in the world.
I’m personally continuing to invest in Dysart as it has all the drivers to make for a great property investment for the following reasons:
1. Demand significantly outstrips supply (the perfect equation).
2. Vacancy rate is 0.2% (proof of the above statement).
3. Yields are currently 14% (normal for Dysart is 9-10%) – and capital gain always follows yields, so prices will rapidly rise (and they are!).
4. New mining investment in area (over $60 billion) that will last over 20 years. This means more workers, and continued demand.
5. Dysart is a service centre, so is not reliant on only one mine (it has mines to the north, south and west), which means it is not as prone failure due to a mining disaster (but it is prone to a failure of the mining sector).
6. Its highly cash flow positive. A property can be now be bought for $500k (last year for $400k), and rent for $1200-1400/wk (last year $600-900/wk), meaning you are cashflow positive up to $600/wk. This assists you to reinvest and grow your portfolio quickly. Buy four houses, and you have a passive income of $2400/wk (that has to be good investing…).
I consider Dysart to be the best investment in Australia right now, but it wont be in 12-18 months time, as the prices will have caught up, and yields will be back to 9-10%, and capital gains will start to diminish. Then it will be time to find the next big thing.
Use mining towns as a means by which to turbo charge your portfolio. Then branch out into other areas, and property types. Just remember, dont put all your eggs in the one basket…Just put them into the Dysart basket right now.
http://www.news.com.au/money/property/mining-boom-pushes-average-rent-for-central-queensland-house-up-nine-times-more-than-brisbane/story-e6frfmd0-1226040921422Hey Property Investor 1,
Thanks for this well-balanced viewpoint and the article.quickchick
This is my first post on propertyinvesting.com and I want to start with a huge thanks to everyone who has taken the time to post on this topic, you have helped me learn so much already about investing in the Bowen Basin!!
Dysart seems like a good option for a CF+ IP in the Basin, I guess the main concerns I have are whether supply/demand will maintain the impressive rent returns and how hard it will be to find a new tenant(does not sound like much of an issue from Property Investor 1’s comments above).
One point I have taken from a few posts are that mining companies may have a cap of around $1k/wk for rentals and may avoid a property if it has a pool. A place that I am currently looking at has a pool and a 12 month lease at $1350/wk. Does anyone with a bit more experience investing in the area have any suggestions whether this may not be the best property to start with?
Hey Tobyson,
I don't know about the pool, but one of my properties in Dysart rents for $950/week, and the other for $1200/week. No pools between them. They have never been vacant in the two years I have had them, with one rent increase each in that time. I have a great PM in the area who lines up the mining companies very efficiently. Send me a message if you'd like the contact details.
Hi Tobyson,
We found during a mining lull, our property in Dysart with a pool wouldn't rent. Companies refused it.
Solution: we got rid of the pool!If this property you're looking at already has a company lease though, I doubt they'll let it go at the end of the tenancy period unless they no longer need it.
I wouldn't not buy it because of a pool.
hi guys,
1st post in the forums! I'm looking make my 1st rural/mining property investment and could really use some help!
I've been looking at Clermont recently but by the looks of it most people on here are suggesting Dysart tho, what are your thoughts on clermont? I'm looking at a 3-4 bedder for $350k. rental returns are about $500-$600 so suprisingly a lot lower than Dysart, i assume this is because of proximity to mines?
I have a few concerns tho, flooding is a major one as it seems ot be quote common in the area. does homeowner insurance in the area cover acts of god? the mines in the close proximity to the town only have about 10-15 years life on them (although from what i've read coal mine lifes are usually extended), the larger mines are still about 100kms away.
i only have 1 property in my portfolio and have never bought it a mining town before and feel a bit overwhelmed by it all. while the returns are very attractive i'm worried the risks may be too high considering i'm still trying to build my portfolio. what do you guys think? any feed back would be much appreciated
Anyone familiar with Collinsville and whats going on there? Seems prices have been on a downward trend and there are alot of properties available for rent. Heard there is a new mine close to approval but sees this does not seem to be having any upward affect on prices yet.
Mel
For me Blackwater is the next Moranbah, absolutely nothing available for rent atm. towards the end of this year when alot of rents will come up for renewal and I think we will see a big spike. most second hand homes atm are renting between 500-600, but with a paint job, carpet etc they will probably fetch for between 800-1000.
A similar thing happened in Moranbah and Dysart a couple of years ago. There was nothing around and in the space of a few months rents almost doubled.
there are six operating coal mines, with one under construction and two more mines not far behind, plus gas activity is ripe, bow energy has opened its csg power station
see link: http://mines.industry.qld.gov.au/assets/mines-pdf/cq_bowen_basin_mines_and_staff_a3_mar11.pdf
see link: http://mines.industry.qld.gov.au/assets/mines-pdf/cq_gladstone_region_mines_and_staff_a3_mar2011.pdfHi Coalstar,
I'm still doing my DD on Blackwater as we are wanting to buy an IP there very soon and so far I have to agree with you that the next Moranbah could be Blackwater.
I've tried to get onto the links that you've provided but it does't seem to work.
Are you able to up load them again?
Thank you,
M Y
try these links;
1. http://mines.industry.qld.gov.au/assets/mines-pdf/CQ_mining_energy_projects_and_map_May2011.pdf
2. http://mines.industry.qld.gov.au/assets/mines-pdf/cq_bowen_basin_mines_and_staff_a3_may2011.pdf
3. http://mines.industry.qld.gov.au/assets/mines-pdf/cq_gladstone_region_mines_and_staff_a3_may2011.pdf
4. http://mines.industry.qld.gov.au/assets/coal-pdf/new_csg_cc.pdfas you will see Moranbah is going crazy but off course its a bigger town than Blackwater. It all comes down to supply and demnd in the end
Hi Coalstar,
Thank you, for the links – it was an interesting read.
On this website http://www.propertyoz.com.au/Article/NewsDetail.aspx?p=16&id=4076 it says that there will be 12 units to be developed in back water sometime this year. My concren is that, if I brought an IP in the town and these units gets built I won't be able to rent mine.?? Or should look at this in a positive way and say that it's good that the town is going to boom?
Any thoughts anyone?
Thanks
M Y
Investing in any mining town is always risk.
The concern is that the new mines are looking to have a 100% FIFO workforce. Meaning people will be living in camps set up by the mines.
http://www.cqnews.com.au/story/2011/04/01/meeting-validates-the-fifo-concern/
This may or may not happen and may or may not have an effect.
Just do your research
Hi fellow investors,
I am looking at adding one unit or a duplex to the backyard of my IP in Dysart, QLD.
I'd greatly appreciate it if anyone could recommend contacts for:
1) a local town planner to assist with DA/BA application.
2) a removal/transportable house company, or
3) a local builder
Many thanks,
yzj14
Hi All
We are thinking of investing in Dysart but are concerned about Fly-in and Fly-out and what impact this might have on the property.market there. Does anyone have any information about if FIFO is going to go ahead for all mines in the area or if it's only going to be for new mines.
Thanks for your help
Kirstiekirstieh wrote:Hi All
We are thinking of investing in Dysart but are concerned about Fly-in and Fly-out and what impact this might have on the property.market there. Does anyone have any information about if FIFO is going to go ahead for all mines in the area or if it's only going to be for new mines.
Thanks for your help
KirstieAll of the press that I’ve read about FIFO in the area relates to Moranbah, where there is an airstrip. I don’t think there’s an airstrip at Dysart (I don’t recall seeing one). Dysart is 80km from Moranbah, so I don’t think FIFO threatens Dysart as it does Moranbah.
There a lot of mines that bus workers up from Mackay, and they stay in temp accomodation. This has been happening for a couple of years though, so is nothing new.
In my view, Dysart is a good spot because there are a number of mines nearby, but it’s not big enough to have an airport.
Daedalus.
Hi everyone,
I’m heading up to Blackwater in a couple of weeks time to have a look around and maybe an investment property.Does any one have any tips of where to buy or where not to buy? Anything I need to watch out for while I’m there?
Thank you
MY
Hey MY, Prices in Blackwater are currently on the way up so its a good time to buy. Try to stick to properties that have current commercial leases so you can get paid rent right away and you will be safe when things go bad. That’s what I did and it helped me through the last two years during the GFC when my properties were empty but the company still had to pay rent due to the lease. This one is apparently leased until november but you’d have to find out how much rent it’s getting just as an example but there are a few for sale now.
http://www.realestate.com.au/property-house-qld-blackwater-107486891
Andrew
Hi Andrew,
Thank you for the tip. There is not much houses on Company lease at the moment. If I did by a property, how can I get the company to lease it?? Do I just tell them that I have an investment property avaliable to rent?
And is it better to buy on freehold or leasehold?
Thanks again.
MY
Sorry MY I’m not too sure how you would approach a company. Maybe through the realestate office? I would think most properties are rented by the mining companies which would be a company lease? Freehold would be the way to go as with leasehold you don’t actually own the property as far as I understand.
Andrew
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