QLD Qld Mining Town - Dysart

Hi all,

Is there anyone on here that has knowledge of Queensland mining towns. I just had a look at Dysart where you can buy a property with approx 10% yield for under $200,000

The downside is that at the end of life of the mine, which I estimate is about 40 years, the value of the property would drop substantially. The prices are also quite volatile and they dropped significantly after the mining boom.

Has anyone invested in these towns and done well for themselves or are they generally regarded as bad investments? Is there any future for the town once the mines close (e.g. due to agriculture etc.)?

 

I worked in and around Dysart and Tieri in the mid 2000's, and while accommodation was provided with my role - I had a few mates buy in Dysart (and Moranbah, Nebo etc.).
For most, it was to save having to pay exorbitant rents (e.g. $600+ for a dog box), but another mate bought a couple of investment places (at around $60-100K each), and made a motza.

It's not all roses and sunshine though, when the construction phase(s) finish, the workforce dwindles, and of course, the need for extra housing dries up. Same goes when costs get cut, and contractors are let go - almost immediately.

The investors that came in towards the end of the boom, and paid $200+K for dog boxes, were left floating up the creek without a paddle...
I'm not based in that region any more, so have no idea of what the current state of the market is, so take my 0.002 cents for what it's worth - bugger all!

Yes, there is agriculture around the region, but most medium to larger farming/grazing enterprises have accommodation on the station - for their workers to live in.

It really does depend on your risk appetite. For some people, $200K is not a lot to risk - for others, it is.
Before you pull the trigger, maybe jump in your car on a Friday arvo and shoot up and have a look around - you'll be there by midnight. Stay at the pub, or caravan park, talk to a few workers/locals and get a feel of the place.

You might also like to keep in the back of your mind that management fees might be significantly higher, as is insurance, along with the cost of trades (for repairs/maintenance) when factoring in your 10% yield.

 

Look at emerald prices are still affordable good rent and much larger demographic watch coal prices like a hawk if investing in mining area check Mackay although the horse has started to bolt there imho

Still well under peak prices in the majority of the mining towns in CQ but a lot more camps etc now

 

Thanks for your responses guys. For now I think it's a bit high risk so I've expanded my search to look at regional properties in other states (non mining related).