Thoughts on Bowen Basin

[Country_dweller]

Hi There,

I am wondering the opinion of the forumites on the Bowan Basin and related mining areas in Qld? I have recently purchased and have my own reseach that I am happy with, but it is always good to consider the opinions of others with experience. Any thoughts are appreciated.

Cheers
Tammy

 

[Shane Port]

Hi Tammy
I live in Mackay and work in Bowen basin out of Dysart, where did you buy.

 

[Country_dweller]

All the way at the other end of the basin in the Banana Shire. Any thoughts on whats happening down there?

Cheers
Tammy

 

[WallyB]

Lots of water happening down there at the moment.....

Mackay is somewhat unrecognisable to where it was 5-10 years ago when sugar prices were dead and mining sector was merely steady. The (relatively) new Mky marina seems to have a shiny new yacht arriving every other day, house prices in many areas are dearer than SEQ's and lots of new suburbs are appearing (some even above the Q100 flood level)

I hold no IP's in the place however Mky will always be a good long term investment for a town it's size due to industry diversity if nothing else

 

[Country_dweller]

Any thoughts on farther south, ie aroung Biloela, Moura, Banana, Baralaba through to Wandoan?
Cheers
Tammy

 

[Shane Port]

Dont know about Banana region but a point of interest around Dysart and Moranbah is the history of houses in these towns. A lot of houses in the market now and selling from 250k to 350k were actually purchased by owners from BMA (the mining company that owned them) for very little as the mining was at an all time low. When i say very little the price range was from 3k to 15k depending on style of house. Not bad buying when you consider that some people claimed first home buyers. As coal prices rose so did the house prices, there was a 7 year caveat on houses which meant that the owners could not sell during that period. As caveats are coming due people are selling and moving on. The price is obviously driven by demand and most renters are contracting companies. I guess the house prices will go down with the next downturn which all the locals assure me will happen, however it does not appear to be any time soon. Me personally would be uncomfortable paying top dollar for these houses as if and when downturn comes contracters are first to go and so to rental demand. However so saying i once had two houses in Mt Isa and was quite happy to get rid of them but wouldnt mind having them now. Banana would be driven by coal prices i would imagine so maybe keep an eye on this and dont leave run to late if you think of selling.
Shane

 

[Country_dweller]

Hi Shane,

Thank you for those insights. Yes, coal is a driver in the Banana Shire. Expansions of Anglo, Stage 2 of Belvedere and the upcoming rail links seem to be reviving the growth. I do take your point though on being driven by the rental market. You are exactly right. It is a bit like anything, you need to have your eyes open.

Cheers
Tammy