What first home owner's grant cuts mean for Mackay buyers

FIRST-HOME buyers are set to miss out on $5000 in the First Home Owners Grant, thanks to the State Government's budget.

Local home builder encourages buyers to get in quick before $20,000 First Home Owners Grants are reduced. Picture: Contributed

FIRST-HOME buyers are set to miss out on $5000 in the First Home Owners Grant, thanks to the State Government's budget handed down on Tuesday.

After July 1 the grant will be lowered to $15,000.

Mackay builders are urging potential home-buyers to act quickly as they only have until the end of the month to score the full $20,000.

Gemini Homes builder Graham Stritzke said that keen buyers should run the gauntlet, get in touch and so long as there was ink on paper, they would be able to avail themselves of the larger grant.

"If they want to get in now, they still can. You can sign a contract before the end of June and you have 18 months to build the house," he said.

Mr Stritzke said that he has homes for as little as $320,000, with three bedrooms and a single garage, perfect for first-home buyers and builders.

"It's pretty simple, come in, they stay where they are, they live in their house, their house gets built and they make their final payment from the bank and they move in," he said.

Meanwhile, the news is regarded as "mixed" by the REIQ, which says the reduction in the grant is nothing compared to the government's failure to extend it to existing homes as well.

"Disappointed, is the best way to describe how we're feeling about this lack of action from the Treasurer on the grant being applied to established homes," REIQ spokesperson Felicity Moore said.

"Regional Queensland desperately needs buyers to absorb some of that excess supply and the grant could help first home buyers enter the market.

"However, it would be overstating to say there was no good news in this Budget.

"We are happy the FHOG has been continued, even though it is at the reduced rate. It will continue to stimulate construction and employment, although this benefit will continue to mostly be felt in the southeast corner."

Originally published as What first home owner's grant cuts mean for Mackay buyers