Who invested in Dysart? Mine is closing…..

I think there are a number of mines in the area

This is one problem with mining areas if there is a downturn it could see prices fall hard.

Definitely do not panic, lol. There are several other mines surrounding Dysart, but if you did proper due diligence prior to buying you would already know this. It will definitely see a drop in demand with an increase in available properties, but this is a primary example of the risks involved with investing in mining towns.

Good luck to those who have already invested in Dysart, I for one will be watching with interest what affect this mine closure has on property in the area.

I have a few properties in Dysart and compared to your regular IP it is a no brainer. Current have a $450k purchased property earning $2k per week and with the recent news it might go down to $1200 per week on next renewal – which will still yield a %13.8 return ( oh me oh my what should we do!)
More important than the mine closure due to union and political reasons the mining companies have put a freeze on new rentals which is having a short term effect on all of the towns in the Bowen basin and is unrelated to the mine closure. This is the primary reason rentals like mine will drop from $2k to $1.2k. This will be short lived and is just a rent cooling stunt the mining companies are performing.

In fact it irks me a little when investors and media in particular with their measly %4.5 returns and neg growth wave their arms in the air and exclaim their “I told you so’s” with regard to resource based investments.

To make this crystal clear – a severe downturn in the resource market represents a %13.8 return. Need I say any more than this?

All towns driven by mining have their ups and downs due to the volatility of the labour market, unions and general supply and demand however the long term outlook for Dysart and similar towns is very strong. The Norwich mine by the way isn’t fully closed and has direct, non union/contractor staff working it at the moment. The so called closure resulted in a whopping 49 people without work and BMA have even admitted that they will reopen in 2013. For people who don’t know the area there is also a scheduled expansion of the Saraji mine which will require 2500 people to construct and another 1400 people to work it on going for the next few decades. This coupled with Norwich reopened will place a huge demand on housing.

Back in 2008 BMA there was a similar scenario with rents and temporary mine closures. Anyone who purchased in this time got a great deal. Be greedy while everyone is fearful is what ( someone very reputable said) The long term upside is too good to ignore

feedback on this is most welcome and anyone who is after any further information on the area please let me know. We have been working property in the Bowen Basin for the best part of 8 years now and having seen our fair share of property cycles are more than happy to share the experiences.

Rob

House Hunters Australia
http://www.househunters.com.au

good thing i didn't invest there.

However, even though the mine is closing, arent there other mines around the area which will still help to maintain some of the demand for properties there

Hi all,

see more info about this area at:
https://www.propertyinvesting.com/forums/property-investing/general-property/4344732

I currently reside in Dysart and there is money to be made. Will try to keep it short as there is so much info. @ my post. Dysart is surrounded by some other mines though predominantly accomodates BHP employees (not contractors). There is also a smaller mining camp which services Thiess Lake Vermont mine.

Dysart has become the new accomodation centre for workers at BMAs Peak Downs mine, normally accomdated at Moranbah. The travel is about the same and with the temporary hold on Norwich Park, this is the only area which has some accomdation available.

But a word of caution..

BHP is building a bucket load of their own housing including 2 bed units, 3 and 4 bed houses of a very high quality (estimate is 50). They have put a stop in their new agreement to leasing any external rentals in Moranbah (so may follow suite in Dysart) and most of the current leases in Dysart are done on a periodic lease, so as soon as the house is complete the tennant moves out. The houses being constructed are built by a contractor and shipped up in 2 pieces and take as little as 4 weeks to make turn key ready. This stands to reason as it is a much cheaper alternative to being at the mercy of the rental market and gives the company an asset which it can pay off and own – where the value does not matter.

To add a little salt – Hutchinson group are also doing a private project of units I think about 14 (they demolished a small shopping square for this as the returns are far better) *note this is not shown in website link below, and Cullen Group are doing a reasonable size multi unit dwelling right in the centre of town. In addition the BHP camp is building a whole new section for contractors with at least 100 rooms (encroaching on the golf course !!) and I have watched the MAC camp import so many new rooms that at one stage they could only store them offsite on the verge of the main road to the mine.

http://www.hutchinsonbuilders.com.au/project-categories/modular/

http://www.cullengroup.net.au/gallery/79

http://www.themac.com.au/our-businesses/the-mac-accomodation/mac-villages/dysart

ABS stats put the population of this town at best at 4000, I would say that it easily eclipses 5000. However there would be close to 3000 camp rooms available at any one time. The fly-in-fly-out arguement keeps brewing, but in my view the bottom line is that if the companies don't have to accomdate employees, it saves a significant amount of money. And business is about making money.

Always do your due diligence and have your worst case scenario considered !

AJ.

I currently reside in Dysart and there is money to be made. Will try to keep it short as there is so much info. @ my post. Dysart is surrounded by some other mines though predominantly accomodates BHP employees (not contractors). There is also a smaller mining camp which services Thiess Lake Vermont mine.

Here's an article that will be of interest to Dysart's property investors. Oh yeah, I forgot the boom is over, so don't read this.

LEIGHTON'S mining services arm, Thiess, has won a $2.3 billion contract to extend operations at Jellinbah Group's Lake Vermont coal mine in Queensland's Bowen Basin.

The six-year agreement will double production from 4 million tonnes to 8mt a year, and continues Thiess's responsibility at Lake Vermont for mine operations and maintenance.

Thiess managing director Bruce Munro said, "Thiess is very proud to continue its involvement at the Lake Vermont mine where we've been working with the Jellinbah Group from the very beginning to plan, build and operate the mine."

Michael Wright, the Thiess executive general manager for Australian mining, said the extended operations would bring opportunities for the people of Dysart, about 20km from Lake Vermont Mine, which now employs 350 people.

"The contract is reward for their performance, their daily commitment to the safety of our people and to meeting our clients' objectives," Mr Wright said

"We are mobilising ultra-class mining fleets to meet the increased production requirements and we are truly excited by the opportunities this brings to the people of the Dysart area."

Jellinbah Group chief executive Greg Chalmers said the continuation of Thiess as the mine's long-term operator ensured its on-going delivery of competitively priced coal.

"We look forward to working closely with Thiess to maximise the value of Lake Vermont and continue the mine as a safe, reliable, responsible and productive operation,'' Mr Chalmers said.

It’s going from 4mtpa to 6 then 8 over the next 3 or so years depending on access to freight sources. In terms of volume its a tiny blip in the scheme of things. In terms of increased personell…. you won’t even notice them. In places like Karratha and Port Hedland they talk about increases in the 100’s of million tons.

I think there’s something like 700mtpa mined of which we export around 320mt. Some little mine somewhere that increases production by 2-4mtpa over 3+ years hardly gets me excited. Its the problem with MSM and media releases. The hype is always over the top and out of proportion to the actual event.