Bowen Basin QLD Mining Towns – Opinion on offer

Thanks everyone for the very valuble info. It is good to get first hand information from someone living in the area and I appreciate your input.

I live in the Karratha area and have seen a bit of a downturn here.

Tyhanks again.

Cheers

Chris.

As a property owner in Dysart (of 3 rentals) I believe the housing price decrease has much more to do with the ex housing commission homes flooding onto the market at just the same time as the "Global Financial Crisis" began to affect mining stocks and bringing on a lot of fear. Our experience is that companies like BMA are snapping up rentals being offered to them and other companies we have as tenants didn't seem to blink when we increased rents substantially. All that says to me that these companies still have a great deal of confidence in the mines around the Bowen Basin and aren't planning on going anywhere. The quicker confidence returns to property owners and the panic of needing to sell passes, I'm sure things will turn. How can anyone complain when you can buy a place for under $400k and rent it out for $1,000+ per week. That's a return of 13%+. With shares going backwards and banks offering something between 4-5% I know where I'll keep investing! Get over the fear, take a risk or two and start living!!!

Guys, I have a IP in Dysart and is being rented out for 1.1k  – but the rental lease will be expiring in June 09.  Can anyone advice me whether I can still ask for the same rent of 1.1k or, otherwise.

NB: Read the thread, and it gave me some level of comfort for the time being.

cheers

Hi everyone,

BMA have set a ceiling of $1100 per week that they will pay for a house on behalf of their permanent employee's and this has only been a recent thing they have done.  The house we just bought which our tennant goes in starting next week is rented for $1100 per week by BMA.  The deal is this…. BMA will not find their employees a house, the employee has to go to BMA with a house they want to rent and if it is up to BMA's standard they will take a lease over that property either for one year and if you are lucky two.  This has to go through the local real estate 'Vision'….. I know this because I personally spoke to them offering our house and that is what they told  me… It was easy for us to find someone to rent our house as we work at Saraji and our tennant is in the 80's on the list so hopefully he will be in it for some years…

I can tell you this there is around 80 employees waiting for BMA accommodation at Saraji mine alone , I cannot tell you the number at Norwich Park unfortunately… Now BMA have committed to build about 30 per year for the next 3 years is my understanding.  Of these 30 half are for each mine.  Now with those numbers rentals by BMA employees will still be needed for some time to come….

The Voluntary Redundancies have now closed and employees will be notified soon if their application was successful.  Remember they only want a very small number of employees to go.. There is quite a few of the older men wanting to take the VR as they are a year or two off retiring anyway and with the incentives to take the VR money wise, honestly they are mad not to take it if they can get it.   Yes some of them will own their house here, some no doubt will sell and others will rent.  These are men with alot of expertise and they will need replacing and they will be replaced as soon as everything settles down… The positive aspect with Dysart unlike Moranbah is that the council  has not made any provisions for releasing land to the public.  A local land owner was in the process of subdiving alot of land into acre lots but as far as I know this is not going ahead.  Without this happening it keeps prices high as demand is much greater that what is available.  All the vacant land in Dysart was sold years ago and has been built on.  Hope this is of help..

Honestly who knows what will happpen but if you don't have a go you will never know!  can't take it to the grave with you hey..

Hi stu_-macca

I use raine and Horne in MacKay and have been happy with them.

Vision are pretty good too I hear.  I have a friend that has 3 properties with them.  The advantage that they have is that they are living in Dysart.  They are also the agents that BMA go to for rentals.

Your property is in Moranbah isnt it ?? 

I make a point of speaking to the agents in Dysart often.

I did get the rent increase in dysart that I wanted without too much trouble.  my original tenants moved out because they were not happy with the rent increase.

I initally had a lease with a compnay for 2 years at $1000 a week which i was over the moon about.  the agent then included a rent review in the lease and they cracked em !!  wanted the lease changed to $950 for 12 months take it or leave it.  I was advised to take it !! 

if you send me your email address i will forward you some more info if you are interested.

   
fingerscrossed

Hi all. We have been following this forum with great interest since purchasing a property in Dysart however we are now quite anxious after all these job losses, particularly at Norwich Park. We read a press release suggesting that property in the Dysart area would fall around 30% in value. Obviously we are concerned but we thought we'd see if anyone local to the area could give us an insight as to the impact the recent losses have had in relation to rental demand/prices, worker numbers etc. Should we stay or should we go???

hi guys!

well – u now have someone who lives in Moranbah on the forums    so u can ask me anything u want.  Ive been living here for 3 years courtesy of my husbands work and i have a decent knowledge of RE in the area.

rentals are still totally crazy here and even the 40 year old houses with original kitchen and bathrooms are renting for $800+ a week.  the house we moved out of last year was one of the first houses in Moranbah and it is renting for just under $1000 a week.  That is original kitchen and bathroom.  take my word for it … its a filthy dump.  no fence, not even a dining room, no room in the kitchen for a fridge.

we are now in a 30 year old house but its had major renovations and its in a better street.  the inside is very very nice.  and its renting for $1200 a week – it could get up to $1400 a week though.

I dont know anything about Dysart.  But with Moranbah the major real estate and prop management company is Moranbah Real Estate – they have the best and most listings.  Elders arent too good cos they arent even open all day.  every time i went there it was closed during business hours.  And I know that BMA were dealing with moranbah real estate because as late as last year because when I was househunting they told me that BMA snaps up nearly every house they rent out.

the word around town is that its too risky at the moment.  one of my good friends owns a real estate business in town and she confided that in her opinion u wouldnt purchase at the moment in Moranbah.  i was thinking of purchasing and she told me not to.

here is the RE.com.au pages for Moranbah. – http://www.realestate.com.au/cgi-bin/rsearch?id=moranbah&a=qfp&cu=fn-rea&t=res&q=Go

the trend she has noticed since working here years ago is that the prices will be fairly uninteresting until there are about 3 or 4 pages left of houses.  thats when the prices start going up because of the small number of houses.  at the moment there are 9 pages of property.  so she told me not to purchase now.  and when u have a real estate agent telling u not to buy the houses then u know they are giving u their real opinion!  plus we've been close friends for a couple of years now.

she said that when it gets down close to that – maybe 5 pages or so – purchase then if im still interested.  but keep a close eye on it.

in regards to the mines, there are three new mines opening up in the area around Moranbah.  We are anticipating that the Moranbah slump will finish soon because of this.  Heres the local media on it:

http://www.dailymercury.com.au/story/2009/03/27/jobs-mines-Aquila-Eagle-Downs-Washpool-Vale/

I think once u find the right house for the right price its SO worth buying here.  in regards to rentals u will always be able to charge the ridiculous rental prices.   there is heaps of construction around town and new houses are springing up everywhere.

Moranbah has another 15 – 20 years in her yet!

Many thanks!!! We're very nervous and need the reassurance!

Hi Karenday

Thanx heaps for your input.  I am sure there are plenty out there needing some reassurance at this time.

Are you able to tell me if the BMA Cavill Ridge is still a goer and what is happening with the fertilizer plant ??

These are the 2 reasons i bought in Moranbah in the first place !!

Also, I dont understand why your Real Estae friend has adivised you to hold off purchasing in Moranbah until there are less houses for sale.

If you are confident that Moranbah is going to pick up again why wouldnt you purchase now while there are plenty for sale and more chance of negotiating a better deal ?

Thanx again for your help and input

Fingerscrossed