RESP Vs. Rental
A Better Way to Fund Your Child's Education
For years, Registered Education Savings Plans (RESPs) have been the go-to solution for Canadian families looking to save for their child's education. With government grants and tax-sheltered growth, they offer a reliable starting point. But as education costs rise and families face the reality of depleted savings post-graduation, a critical question arises:
What if your education savings didn't end with tuition? What if the same effort could fund your child's education and create lasting wealth for their future?
Talk to us today on how we can help!
Beyond Education: How Real Estate Builds Wealth and Funds Your Child's Future
The Education Savings Challenge
-
Restricted Use: RESP funds must be used for eligible education expenses. If your child pursues a trade, starts a business, or doesn't attend post-secondary school, accessing funds may trigger penalties or grant clawbacks.
-
Depletion After Graduation: RESP savings are spent on tuition and living expenses. Once used, the funds are gone, leaving no residual value or ongoing benefit.
-
Rising Education Costs: By 2040, a four-year degree with residency is projected to cost ~$135,000. Even with maximum RESP contributions and grants, families face a shortfall of ~$53,000, requiring additional savings of $164/month beyond the RESP standard contributions.
Why Real Estate Is a Better Alternative: Key Advantages
-
Residual Value: Unlike RESPs, a rental property retains its value, appreciating over time and generating rental income even after education costs are covered.
-
Flexibility: Real estate equity can fund education, starting a business, buying a first home, or other major milestones.
-
Tax Efficiency: Accessing equity through refinancing is tax-free, unlike RESP withdrawals, which are taxable as income.
-
Generational Impact: A property can be passed down, creating ongoing wealth for future generations.
Download our full guide about RESP Vs. Rental
by clicking here:
Take our full client Journey on RESP Vs. Rental
by clicking here:
