Epeneza Fonoti believes she and her family can start saving if they are able to find a cheaper house to rent. Picture / Martin Sykes
After years of wandering, Manukau's Fonoti family may be able to buy a home of their own by about 2012, under the new KiwiSaver scheme.
Epeneza Fonoti, a volunteer social worker for the Salvation Army, and her husband Colin, who earns $49,000 a year as a welder, have never been
able to save enough for a deposit on a home for themselves and their five children, aged 10 to 18.
They have rented houses since Mrs Fonoti's parents died, forcing the sale of the family home.
Last year, they had to move three times in two months when the houses they rented were sold.
Yesterday, Mrs Fonoti was looking for a new rental home again because the family cannot afford their current rent of $350 a week.
Under the KiwiSaver scheme, they would have to save 4 per cent of their income, or about $2000 a year. Mrs Fonoti believes that will be possible if they can find a cheaper house.
The scheme starts on April 1, 2007, and they would have to save for three years to qualify for a Government subsidy of $3000 on a deposit for a home of their own. But even if they have saved $6000 themselves by then, that is unlikely to be enough.
However, after five years, they will have saved $10,000 - or possibly $20,000 if Mrs Fonoti or one of their older children can get a paying job and open a second KiwiSaver account. They will then qualify for a Government subsidy of $5000 if Mr Fonoti is the only saver, or $10,000 for two savers. Put that together and you get $15,000 or $30,000.
"It's a good idea," Mrs Fonoti said. "That gives it a hope."
