RESP Vs. Rental
A Better Way to Fund Your Child's Education​
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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:
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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?
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​Talk to us today on how we can help!
Beyond Education: How Real Estate Builds Wealth and Funds Your Child's Future
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The Education Savings Challenge
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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.
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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.
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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.
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Why Real Estate Is a Better Alternative: Key Advantages
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Residual Value: Unlike RESPs, a rental property retains its value, appreciating over time and generating rental income even after education costs are covered.
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Flexibility: Real estate equity can fund education, starting a business, buying a first home, or other major milestones.
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Tax Efficiency: Accessing equity through refinancing is tax-free, unlike RESP withdrawals, which are taxable as income.
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Generational Impact: A property can be passed down, creating ongoing wealth for future generations.
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