Q1. What % of the atmosphere do you think is CO2? Nearly all the answers given in Gregg’s survey were between 20% and 40%, the highest was 75% and the lowest 2%. The correct answer is a mere four 100ths of 1%. As a decimal it is 0.038%. As a fraction it is 1/27th of 1%.

Q2. Have you ever seen this % given in the media? All said no. The correct answer of course is also no.

Q3. What % of CO2 do humans produce? Most said between 25% and 75%, with someone saying 100%. Remember, the respondents are apparently well educated, hold degrees and work in a professional capacity. The correct answer is just 3%. As a decimal, it is a miniscule 0.001% of the air. All of mankind produces only one molecule of CO2 in around every 90,000 air molecules.

Continued on p.4

QUEENSLANDSAdapted

from the

TV show©

Issue 3 - 2011 Published by Paul Le Mura and Associates © ABN 77 010 526 833

INSIDE THIS EDITION

Your choice of decorative feature tiling can make the smallest and most ordinary rooms in the home something to be proud of, but it can also be one of the most difficult items to replace if you change your mind or choose incorrectly – particularly where plumbing and waterproofing is concerned.

For those who have missed the recent news that infrastructure charges are to be capped at $20,000 for studio to two bedroom accommodation and $28,000 for three bedrooms plus is going to positively impact the building industry in the short term might be mistaken.

How to be Feature Fearless - Tips for choosing decorative feature tiles

Can’t see the forest for the trees or a Catch 22

Full story on page 6

Full story on page 12

C l i m a t e c h a n g e p o l i c i e s s u c h a s o u r p r o p o s e d c a r b o n t a x o r a n E T S ( e m i s s i o n s t r a d i n g s c h e m e ) a r e n o t a c t u a l l y a i m e d a t r e d u c i n g c a r b o n p o l l u t i o n

Climate change policies such as our proposed carbon tax or an ETS (emissions trading scheme) are not actually aimed at reducing carbon pollution – that black gritty stuff that sticks to miners and makes you choke whenever you visit Honkers or the Chinese mainland – but are aimed at reducing carbon dioxide in the atmosphere.

Carbon (dioxide) tax

So what do we really know about CO2 or carbon dioxide? The answer appears to be very little…and ignorance isn’t bliss in this case. A recent questionnaire undertaken by climate change researcher and astronomer Gregg Thompson, found the following results. The correct answers to the questions are his and are backed up by numerous independent sources.

According to a recent Galaxy poll, one in three Australians believes the world is warming and carbon dioxide emissions are to blame. One in four thinks the temperature changes are part of the natural cycle, whilst 38% aren’t sure what to believe.

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Diamonds are foreverThe Diamond Head 372 is a two-storey, custom design home illustrating the company’s ability to design a stylish home on an awkward shaped block. Its many unique features can be easily incorporated into any plan.

The home’s lower level comprises of an open plan living, dining and kitchen area complete with its own butler’s pantry and additional kitchen servery overlooking the herb garden.

The dining room spills out onto a massive alfresco area which overlooks a pool and water feature, and a unique teppanyaki bar with its own waterfall. Fall asleep to the soothing sounds of water on the poolside day bed.

An additional multi-purpose room and adjoining bathroom complete the lower level, while upstairs consists of three large bedrooms including the

master bedroom with its own spa bath. A special feature of the upper level is an outdoor room with kitchenette, which can be closed on all sides during bad weather. The Diamond Head 372 has been finished off with the finest inclusions and stylish, Bali-inspired decor.

To take a tour visit their display at the corner of Whitehaven Way and Pelican Waters Boulevard, Pelican Waters. Priced from around $570,000. To contact a sales consultant call (07) 5439 7157.

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– China will be emitting something like 25 times the entire emissions of Australia today, rendering utterly ineffective the 5% cut we will purport to achieve at a hugh and permanent cost.

In fact even if the whole world got on board, and collectively we reduced human CO2 contribution by a third, it would have no impact on the weather or climate.

Fix carbon pollution (and other toxic waste) please, but fighting CO2 via a carbon tax or anything similar is a waste of time and our money. This nonsense must be stopped now.

The next federal election is more than two years away and the independents have no incentive to force an early one. In 2013 the carbon tax will be a fait accompli. Complacency, now, will cost us all and dearly. Don’t say you weren’t warned, because you where.

View more of Michael Matusik’s “Missives” at www.matusik.com.au.

Continued from p.1

Q4. What share does Australia produce? The answers ranged from 5% to 20%! The correct answer is 1% of the 0.001% of man-made CO2 or an insignificant 0.00001% of the air. That’s one, one-hundredth thousandth of the air. This is what all the fuss is about!

Q5. Is CO2 a pollutant? All surveyed thought it was, but CO2 is a harmless trace gas. It is necessary for life – as are oxygen and nitrogen. It is not a pollutant. CO2 is what bubbles out of soft drinks, beer and champagne. Dry ice is CO2; it is used

in eskys, medical treatments and science experiments. It is emitted from all plants. This emission is 33 times more than man produces; most of it is dissolved naturally in the oceans

Q6. Have you seen clear evidence that CO2 causes a greenhouse effect? No clear evidence was cited, but the melting of the Arctic and glaciers (and polar bears swimming) was possible proof. Well, there is no proof at all according to Gregg’s work. Without this becoming an issue of the New Scientist, in short, CO2, even at much higher proportions in the atmosphere cannot create higher temperatures. Climate has always been naturally cyclic and variable, due to numerous natural drivers, of which CO2 is not one. Over millions of years the climate has shown far greater changes in the geological record than we have seen over the last 200 years – and there was no industrialization back then. Today’s changes in climate are common and completely natural. The big orb in the sky – the sun – is by far the major driver of all the weather on Earth. Over the last few years, Earth has had much colder winters due to very few magnetic storms on the sun. These colder winters are more noticeable in the northern hemisphere, as this is where most of the land is. Because of this, the Arctic has re-frozen and glaciers are now receding.

The Arctic showed some melting from the

Carbon (dioxide) tax

mid-1990s to mid-2000s due to very high levels of solar activity during that time. But the sun is now entering a period of low solar activity, which is expected to cause global cooling. This could last several decades, maybe more.

It is somewhat ironic that at the same time that we try and combat global warming, the planet will be cooling and it will have nothing, absolutely nothing to do with what we do.

So, taxing carbon achieves nothing for the environment – zilch, zero and a big naught. By 2020 – remember that is under ten years away

S o , t a x i n g c a r b o n a c h i e v e s n o t h i n g f o r t h e e n v i r o n m e n t – z i l c h , z e r o a n d a b i g n a u g h t .

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and hob, one full wall in a shower, and vanity splashbacks.

If you have found a tile you love but are still unsure about the best area to use it then think about the focal point of your room. A beautiful feature tile can really elevate the look of a sculptural basin, fancy shower tap ware or a beautiful podium mounted bath into something spectacular.

Take one step inside any tile showroom and you will notice the store’s most eye catching and expensive features immediately waiting to

seduce you. These are usually the latest fashion, with splashes of colour and stunning finishes including tumbled marble, glass, metal and even actual pebbles. And this can be the point where your best intentions and your budget go out the window.

When selecting glass, marble or pebbles, it is important to remember that although they can really give you that WOW factor, these items are tricky for your tiler to cut and may be best suited to areas that can be finished with a strip of metal edge trim.

How to be Feature Fearless - Tips for choosing decorative feature tiles

Like most decorative decisions, feature tiles are a matter of personal taste. But when the tiles we choose are likely to be in the home longer than we will, how do we live with what we love and still realise maximum resale opportunities for the future?

With thousands of different styles of feature tiles to choose from and so many practical motivations to consider, multi-award winning Stylemaster Homes and Alliance Custom Homes Designers Sharon Piconi and Angela Grayson give you the professional tips for getting your feature tiles right.

So what feature tiles do you choose and where do you put them? Feature tiles can be fabulous, but don’t have too much of a good thing. Remember that adding some stylish accessories can make the simplest wall tile look amazing so if you are going to include decorative feature tiles, then make sure you use them effectively

Your cho ice o f decora t ive fea ture t i l ing can make the smal les t and most o rd inar y rooms in the home someth ing to be p roud o f , bu t i t can a lso be one o f the most d i f f i cu l t i t ems to rep lace i f you change your mind o r choose incor rec t ly – par t icu la r ly where p lumbing and waterproo f ing is concerned .

and the tile you choose is something that will really add to your space for years to come.

Some of the best places to showcase feature tiles include – kitchen splashbacks, bath face

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Stylemaster and Alliance Custom Homes award winning designers Sharon Piconi and Angela Grayson

Feature mosaics due to the additional labour required will cost you more to lay and are generally the most expensive of all tiles to purchase. Since your tiler may need several attempts to cut your tile correctly you should expect to order 20% or more for wastage, and in some cases you may even need to have the tiles cut by a specialist glazier off site.

Grout can make or break your favourite tile. You can use your grout to compliment or contrast your tile and achieve very different looks. However if you select tumbled marble or any other feature tile with a rough or uneven surface it is import to discuss this with your tiler prior to commencing work.

Any little holes or fault lines in the surface will actually catch the grout, and even when they are thoroughly cleaned some of the grout will usually remain in the tile. These tiles are not always displayed with grout in the tile showroom so it can pay to ask questions to ensure you can envision the finished product.

It is also worth considering future maintenance when selecting coloured grouts as it will be impossible to exactly match any areas that become discoloured. When working with natural products it is also important to ensure the tiles are cleaned, sealed and regularly maintained as per the manufacturer’s instructions.

Vertical and horizontal feature stripes have been popular for many years but you will notice the trend is currently moving towards solid areas and full walls of feature tiling. If you do use a feature stripe remember that it should be the same thickness as the main tile being used. This will avoid the need to pack out either the walls or the feature, depending on the thickness, as this effect can result in an uneven surface.

Vertical stripes have long been used as a designer’s trick for making low ceilings appear higher, but a new take on that old trend is to run the feature continuously through both the wall and the floor. Once again you will need to consider the thickness of the different tiles, as well as ensure that your feature is suitable for use on a floor.

When people think of feature tiles they usually have mosaics or listellos in mind. But standard size ceramic or porcelain tiles in a contrasting colour can also make great features. This is a very popular option for people who want a simple clean contemporary look, but still want to create a sense of depth and interest. It can also eliminate the expense and additional labour often associated with mosaics.

Along these same minimalistic lines, some people may prefer just to use a different colour on the floor to the walls and if they have a podium bath simply run the floor tile up and over to create a feeling of spaciousness by increasing the perceived area of the floor space. Remember that larger tiles may cost extra to lay but generally make small rooms feel bigger.

So now that you have the facts about feature tiles you can decide whether you want to go big,

small or not at all with the decorative tiles for your home. Remember that display homes are a great place to discover the latest in tile trends so why not visit one this weekend.

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Mr West adds ‘In our new single storey collection you will find homes ideally suited for the larger families who want single level living, Baby Boomers who want no stairs or are downsizing and of course we haven’t forgotten the young families who are starting their journey towards their dream home.

These new designs offer the usual McCarthy level of specification and craftsmanship and therefore are great value for money. ‘You can rest assured it will stand the test of time’ John says.

The ‘Woods Single Storey Collection’ aptly gets its name from the house designs: Satinwood, Silkwood, Leatherwood, Cottonwood just to name a few.

John is very confident in McCarthy’s new single storey collection and his parting words were ‘The Red Pen is changing everything’. Excuse the pun!

Pick up Your Red Pen and Your Red Pen Rewards Information brochure from any McCarthy Homes Design Centre.

Mr West says ‘The Red Pen is your passport to freedom ... the freedom to change any of our collection of standard designs to suit your exact needs. The difference between us and the other builders is that you get to use your red pen to make structural and other changes – such as moving walls, changing the layout, adding rooms – there is no limit.’

This revolutionary concept offers complete freedom and complete flexibility. Mr West adds ‘We position ourselves in between a project builder and architect which gives our clients the freedom to design their dream home without the price tag of an architect or the limitations and restrictions of a project builder.’

Since the launch of the Red Pen Promotion McCarthy Homes has experienced increased traffic to their website and design centres.

‘The intrigue and interest from potential clients has been overwhelming. Everyone wants to start making their unique changes to our plans to suit their lifestyle.’ John said.

The Red Pen RewardsDue to the success and popularity of the promotion, McCarthy Homes has taken the Red Pen to another level – ‘The Red Pen Rewards’.

John explains that this new promotion is somewhat similar to Fly Buys, once you have your points (which are allocated to you according to the home you choose) it’s time to go shopping on any of the luxury items you want such as:• designer laundry fit outs• multifold alfresco doors• pivot entry doors• luxury baths and spas and• Daikin air conditioning packages and so much more.

What is The Red Pen?

After doing some qualitative research we realised that our clients preferred to be able to choose what inclusions they wanted as opposed to being told what was included. For example some people liked the BBQ gas point to the alfresco or the water point to the fridge (for the icemakers) but others would have preferred to spend their money elsewhere.

We have listened and have changed our ‘one size fits all’ approach and given the choice and inclusions back to you.

New Single Storey CollectionIn response to a mass of enquiries for single storey homes McCarthy’s now has 12 new single storey designs from the ‘Woods Collection’.

John said ‘Over the past few years we have been fielding numerous enquires for single storey homes.’

Design trends are forever on the move and people’s needs are changing. For several months McCarthy Homes has been working on 12 new single storey designs, each with several different layouts, elevations and configurations.

These new homes are cleverly designed, staying away from traditional layouts, making good use of space and natural light – open plan designs as well as a few unusual but aesthetically pleasing features.’ Each new design incorporates the best of both worlds – ensuring that there is ample room for the family to spend time together whilst not feeling like you are living on top of each other.

Pepperwood - Rubix Satinwood - Pandanus

Rosewood

Satinwood - Planations

Cottonwood - Pandanus

Papperwood - Waterline Rosewood - Pandanus

John West , Des ign Manager fo r McCar thy Homes and h is marke t ing team in t roduced the Red Pen Concept la te las t year and i t has taken the marke t by s to rm.

We p o s i t i o n o u r s e l v e s i n b e t w e e n a p r o j e c t b u i l d e r a n d a r c h i t e c t w h i c h g i v e s o u r c l i e n t s t h e f r e e d o m t o d e s i g n t h e i r d r e a m h o m e w i t h o u t t h e p r i c e t a g o f a n a r c h i t e c t o r t h e l i m i t a t i o n s a n d r e s t r i c t i o n s o f a p r o j e c t b u i l d e r .

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Queensland’s boy wonder, Treasurer Andrew Fraser, again proved this maxim to be correct, babbling on about getting rid of stamp duty – known now as transfer duty (as if that somehow eases the pain) – at a CEDA conference in Brisbane.

Yes, Andrew, stamp – oops transfer – duty is a relic and an inefficient tax and it should have been stamped out (pun intended) a decade ago, as per the original plan, upon the introduction of the GST. But Queensland Labor and all other state and territory governments, for that matter, are hooked on the revenue. Over $12 billion in receipts over the last five years alone isn’t small bickies.

The Henry Tax Review was correct if you ask me, to recommend the removal of stamp duties in favour of increased land tax. Stamp duties are borne by the purchaser – at the time when they can often least afford it – whilst land tax is paid on an annual basis.

Now, without getting into the sometimes poor way that land tax is calculated, the change from stamp duties to land tax would result in a much better system.But such reform involves more than one

Stamped outlevel of government, and our federal elected representatives, and on both sides of the house, don’t strike me as reformists – in fact, quite the opposite.

So, Andrew, by making such comments (and you shouldn’t be surprised that they got you a front page headline), you have done two things: Announced that your government is already in election mode and further stuffed – the already stuffed – residential market in Queensland. You have announced another reason (bogus as it maybe) why potential purchasers should hold off from buying Queensland real estate.

Sales volumes across much of the state are already in the toilet, with just 38,900 settled sales in Brisbane, for example, during 2010. This is down from 52,000 in 2009 and less than half that traded during the 2003 market peak. The ten year average is around 54,000 sales per annum across Brisbane.

Post flood, our forecast is for around 30,000 sales during calendar 2011. But your latest comments could drop that even further. A warm thanks, indeed. Something seriously needs to be done about the taxes and charges on property transactions and

development in this country. When factoring in both buyer and seller costs, Australia has the fourth highest property taxes in the world at just under 14% of the property’s value. Only Belgium, France and Greece are higher. Total property taxes average around 8% across the western world and are under 5% in the USA, New Zealand and the UK.

If we aren’t going to remove stamp duty on property sales, then at least we can make it uniform across the country. An investor paying the median price for a property in each state/territory can pay between $10,000 and $27,000 in stamp duties, depending on location.

The same applies for owner residents and fluctuations for first home buyers, which are the greatest of all, with first timers in Queensland, Western Australia and Northern Territory paying virtually nothing at all, whilst the transfer duty for first timers can be as high as $23,000 for an averaged priced home in Melbourne and close to $21,000 in Canberra.

The removal or even reduction in stamp duties will help support the real estate industry. More people will buy and sell. They will move more often and help improve labour inefficiencies

and, in theory at least, productivity. It will have little impact on end prices and is very unlikely to improve affordability. A property’s value isn’t determined by the market, valuers or the bank based on what duty its sale attracts. More sales over the longer term usually lead to higher prices. An astute change in how we tax property transactions could lead to more government revenue, again over the long haul.

Andrew, the Queensland property market is very delicately poised at present. Jawboning or worse still, waxing lyrical about changes to stamp duties is already having a negative impact on the housing market.

Several developer clients in the course of normal business over the last couple of days have mentioned that leads (few that they had) have gone cold since Sunday’s front page headline. Some sales are also in jeopardy. Until you are actually ready to implement such a change, no further comments regarding stamp duty are required.

“I’m from the government and I’m here to help.” Not!

View more of Michael Matusik’s “Missives” at www.matusik.com.au.

Ronald Reagan was r igh t , the n ine most te r r i fy ing words in the Eng l ish language are , “ I ’m f rom the government and I ’m here to he lp .”

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The implementation of the charges at the end of the development process rather than an upfront fee is arguably a better stimulus to the development cashflow given the time taken to make sales and develop land.

So whilst we agree that this is a step in the right direction, the reality is that the building industry will continue to struggle as more government “steering committees” and “workshops” are formalised to network the problem. In addition to this, nothing has really changed with the planning mechanism which has profoundly eroded the speed at which development can occur.

In fact, much of the more recent planning mechanism was implemented when the economy was strong, population growth was at record highs and government feared there would be no green space remaining from Cairns to Melbourne as the entire coastline would be developed into houses and highrises.

Now that the economy, population growth and property sales have dropped, one wonders whether the planning scheme is as relevant now or if has the flexibility to cope with the changing cycles.

However, one of the major reasons that the building industry is struggling is because the government has privatised many of the functions it used to provide in the “good old days”.

Like power, water and a host of other

Can’t see the forest for the trees or a Catch 22

services that have gone the way of the private sector, so too did much of the non-private sector accommodation work. The adjoining graph shows just how little government spending now occurs in this part of the economy. And whilst there is an argument that the Private Sector can often do things more efficiently than the Government, there is the counterargument that the private sectors’ interests are not always aligned to those of the community.

With the government’s stimulus package during the GFC that helped with school building, haff

schemes etc, there is yet to be even 5% of house building commencements that can be attributed to the government. This is during a time when housing unaffordability is at near record highs and rents in certain locations are out of control.

So if the government is interested in getting the construction industry back on track, particularly house building, there is arguably just cause to suggest that they should become involved in allocating more resources to public housing.

As shelter often represents the biggest stress for anyone that either doesn’t have it or is borderline losing it, a lot of anxiety would be removed from society. It would also provide the opportunity for people to actually save in order to buy a house.

However the flipside to this argument is that a lot of people would be removed from the rental pools. This would take pressure off rents, but at what cost? When investors are already

For those who have missed the recent news tha t in f ras t r uc ture charges a re to be capped a t $20 ,000 fo r s tud io to two bedroom accommodat ion and $28,000 fo r th ree bedrooms p lus is go ing to pos i t ive ly impact the bu i ld ing indus t r y in the shor t te rm might be mis taken .

difficult to find for both new and/or established property, falling rents are not going to inspire any buying decision.

In fact, the investment market is so tough at present because rents in the vast majority of properties are not paying off mortgages and in many instances have a long way to go before they do.

So asking the government to step up and provide significant numbers of housing for those people who need it is arguably counterproductive to many developers and investors best interests. Like most things though, moderation seems to be the key.

Additional funds for public housing wouldn’t go astray and in the broad scheme of things, it is unlikely the government could provide enough housing to detrimentally impact the rental market, at least in the short to medium term.

The upside though is that many people who work in the construction industry would be put to full time employment and again start to hire new staff.

If one was to adopt a different economic perspective, it is highly probable that a well funded housing strategy would provide benefits outside of creating more jobs for a struggling house building industry, it is suspected that it would also provide better health for individuals as there is a causal relationship between homelessness and health, overcrowding in housing and mental illness as well as a bunch of other issues that positively impact other aspects of the economy.

Perhaps it is time that the Government no longer relied on the private sector to provide another of its core functions, providing housing for those who can’t provide for themselves.

As a society we will be better off and people will again be able to save their way into home ownership and move off the welfare train. This may well be the “win:win” that both the public and private sector needs.

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Rental market

Even in Queensland, and despite the recent flood and heavy weather up north, just shy of 27,000 rental properties (as at late February) remain vacant, which equates to a vacancy rate of just over 5%. Close to half (46%) of these vacant premises are located in the greater Brisbane area.

We, like many others, were waiting on the March quarter rental results to help paint a somewhat clearer picture of what’s going on. Anecdotal evidence, and especially immediately after the January flood, suggests that Brisbane faced a rental squeeze and that vacancies became scarce and rents increased. But our

Our la tes t ca lcu la t ions , based on to ta l p r iva te dwel l ings adver t i sed fo r ren t , sugges t tha t Aus t ra l ia ’s res ident ia l vacancy ra te i s a round 4%. Accord ing to RPData , there a re a round 91 ,000 pr iva te dwel l ings ava i lab le fo r ren t .

recent investigations and my travels of late – I like to visit real estate offices and see what is for sale and rent, sad but true – indicate that there appears, at least, to be quite a bit of stock still for rent, and that asking rents may have even softened in recent weeks. Rents over the last couple of years haven’t really grown that much anyway.

The truth is – and this is turning into a more common occurrence in recent times – we don’t

really know what direction rents are likely to go in the future. A lot depends on what the actual rental market thinks.

Too often, comments about the rental market are from the vendor’s point of view and/or centred on somewhat bogus vacancy rate and median rental growth statistics.

View more of Michael Matusik’s “Missives” at www.matusik.com.au.