hi karenday,
i would like to pick your brains if possible?? am just starting my reserach now on your town and am looking at 22 kenneddy st, anygood?? seems o.k on the surface, backing onto golf course and 1 neighbour, also whats mccool st like seems to be a few round there?? thanks and look forward o hearing from you.yorkie
hi daedalus,
what are your current thoughts on moranbah?? have been doing some research and it looks like some good buying there?? any info is greatly appreciated, also any areas to avoid or good streets to buy etc etc.look forward to hearing from you.
yorkieHi Yorkie,
I like the prospects for Moranbah right now. It's a large town and there's good industry support, even though there's been some negative press.
I agree that there seems like there's some good buying at the moment. It looks like there are some distressed sellers on the market.
Daedalus.
my thoughts exactly,
will do more research and try some offers,
your rental with the big companies? who do u use for managaing in moranbah?also any agents you recommend or not??
thanks .
yorkieHi Yorkie,
Somewhere earlier in this thread is a post about my adventures with Moranbah real estate agents – you'll have to look that up
.I use Mackay Rentals in Moranbah, and I'm pretty happy with them.
Daedaluls
My real estate agent just posted a request for anyone selling in Dysart he's run out of properties to sell! And nope i'm not selling mine, he attached an article saying that the area continues to perform strongly and the demand for coking coal is still high and that development is still continuing, gotta be happy with all that
)Did you all know that the capital growth in Bowen 'the town' has enjoyed a 20% growth per year for the past ten years!
Email me and I will send the article that has been researched to back up the statement.
I only sell stock in great areas and this is one of two I believe in at the moment!
[email protected]
Bluegrassoh whoops i didnt notice ppl had put msgs in here for me! my bad! i had forgotten to watch this thread. ppl are better off sending me a message so that I get it in an email
sorry!I have come to the understanding that BMA is not looking for any additional accommodation in the Dysart area, and for some time to come. The supervisor for staff housing at BMA informed me that they do not require extra listings because all their staff have accommodation and they are expecting rent prices to drop since there is an over supply at the moment.
What BMA informed me with, along with the range of new housing projects to be completed in Dysart (BMA would probably be heavily involved in that) casts doubt that things will be getting better any time soon for owners like myself with rental properties that are left untenanted in Dysart.
Has anyone seen a silver lining around this dark cloud yet?
Im not sure about Dysart – but if anyone wants any updates with the Dalrymple Bay Coal Terminal major expansion the website has the updates on it. http://www.dbctconstruction.com.au/. its now 2/3 complete. that will help with demand in Mackay and surrounding areas.
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!!!
Our 3 bed highset house in Dysart has now rented (been empty since April) for $700pw. ( best rent yet.)
I wouldn't go for a house with a pool, as we found the pool to be a big problem (companies didn't want one). We had it filled in!
Send me a private message if you like.
quickchick
Mummyto3,
A highset with a covered entertainment area, 3+beds, good bathroom, fenced and maybe a shed is a great buy if you can find it for a good price, i tend to think that the prices in Dysart are somewhat inflated, and wouldn’t really give you much more in the way of a capital growth unless you would be willing to do some added value renovations. Something you should then consider is the cost of renovations/maintenance in Dysart and surrounding areas is far more expensive (3x at least) than what you would find in a big city.
The rental returns however for such a property are undeniably ‘awesome’ to say the least.
The property/rental market does not move in the same way it would in a big city since the entire town is pretty much dependent on the mining industry. This proves that there will big swings in the market. I spoken to experienced estate agents in such areas and they said the same thing that everything moves in more volatile cycles more so than your conventional property in a city market. So there will be periods like the current moment we are in where things are very quiet, and it will be the more sought after properties like the one you are looking for that will have the best chance to be rented out to generally managers and their families.I have a low set 3bdr property which has not been tenanted for 12months now. I have renovated as much as i could by laying new carpet, blinds, aircons, cleaned the place up real good….but still struggling to get a look at for $550pw.
hadi wrote:. Has anyone seen a silver lining around this dark cloud yet?I don't post here very often, I "lurk".
But I have a view of an industry update that I will share.
The Coking coal industry is at a turning point right now. Consumption by China has exploded (in a good way). BUT stocks were at an all time high. We need to wait another 2 months to see if China continues to net import coal or not. I would ignore anyone who says the bad times are definitely over, but there is a "silver lining." Coking coal prices are up, customers are even meeting their contractual high prices from last year that they pulled out of in order to please the large mining companies – they are doing this to stay "in their good books" – they do this in case demand outstrips supply again. Believe me, coal producers remember who pulled out of contracts.
Australia will remain the #1 metallurgical coal exporter for a few years, so it doesn't really matter how many houses BMA builds, it won't be enough if prices go up.
Back in October last year I shared with you my thoughts that there would be empty houses in Central Queensland Bowen Basin mining towns, and most people on the forum did not agree. I suggested projects would be cancelled and people would be laid off…..
Like many previous comments, I find this threat very informative and interesting — about investing in QLD mining towns in particular and investment cycle in general.
Just wonder if anyone has any insight on Surat Basin, for towns such as Dalby and Chinchilla?
Hi,
I just thought that I would contribute what I learned about Dysart the other day.
I've spoken with Real Estate agents, and the general view is that things have changed from the case where demand for rental properties was so high, the rent was well over $1000. (Focusing on 3 bedroom 1 bathroom with garage or carport) Now, for a property that may have been getting $1200 rent, it is more likely to only achieve $800. Now landlords are being told what the market rent will be – rather than setting it.
I've seen a few properties for sale which emphasise the 'potential rental income', or list the current rent, but with a lease that is soon to expire. Logic tells me that any new lease agreement will see a substantial fall in that rent.
I'm now much more hesitant pursuing Dysart, but I welcome any information/advice from anyone! I'm looking for those magical investments with a great positive cash flow!!
Thanks,
Amanda.BTW: There is great information on this forum – I'm constantly surprised at just how much I don't know!!
Hi Amanda,
That is the nature of the market in Dysart, and most mining towns I’d say.
Demand and the subsequent return on the investment is dictated by the surrounding mines and it’s productivity and hiring of contractors. Should things pick up to the levels previously seen you will have contractors returning to the mine sites looking for staffing accommodation in the nearby towns, and because Dysart is rather limited in its housing/population intake local rents go through the roof.What I would advise on, is for you to make sure that your property is quality, and that you don’t get blinded by the potential rental income of it.
That’s a mistake i made…..I bought at the time where rents were climbing sky high, and because of my impatience I settled on a sub par property just because i didn’t want to miss out on the high rental return (not expecting a financial crisis). And that decision is biting me in the butt for i haven’t been able to find a tenant for a year now.Good luck..
HadiI agree with Hadi. An investment is an investment is an investment, and should be undertaken with a level head.
Ensure you know your reasons for investing in a certain area – that way when you are in a down cycle, you won't be as stressed about it.
To put some perspective on it, the 1000+pw rents were ABNORMAL – the product of a concentrated amount of mine extension and new mine work. The baseline weekly rental in this area is around 1/2 to 2/3 of that. This is what you should make your investment decisions on – not the 1000+ pw. BTW, weekly rental of 500-600pw is still CF+.
I have a property in Dysart that was getting 1200. It's just gone out of lease and is empty – and I won't be surprised if it remains empty for a little while yet. The boom rents cover the periods of no or lower rent. That's the nature of the beast.
However, there are murmurs of positive activity in the coking sector, with new mines/extensions being talked about around Middlemount and South Moranbah. The long term outlook for coking coal is positive, which is a positive thing for Dysart. Middlemount is pretty much a closed shop, and the accommodation overflow pushes back to Dysart.
I think the prospects for Dysart in the medium term are good, but we're not out of the woods yet. Don't assume boom rents, but when they come they are a nice bonus
Daedalus.
Moranbah is about to happen even more , we have quoted on some large Power installs in the Broadlee area.
Ergon are just waiting for the mine to sign off on the agreement but it's about to happen and once up and running progress will happen. We were expecting to be there this year but as usual delays.Bowen has another large substation being installed by Power Link at Merinda , contract has just been awarded to Downer edi and it's set to begin this year.
Anyone know what demand/prospects are like in Blackwater at the moment? Curious to know who's buying and renting etc…
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