RESPs Suck! Here’s Why Real Estate is a Better Way to Fund Your Kids’ Education.
We all want the best education possible for our kids, but often times it feels like an impossible dream. With tuition and fees constantly on the rise, many parents are left feeling like the only option out there is to put money away in a Registered Education Savings Plan (RESP). But what if I told you that there was an even better way to fund your kids’ education? Enter real estate investing!
Real Estate Investing vs. RESPs
When it comes to funding your child’s education, real estate investing is often a much better option than putting money into an RESP. First of all, RESPs can ONLY be used for your kids education. What's happens if your kid decides to start a business or go to a specialized school that is not eligible for RESPs... then your hard earn money and years of investing goes down the drain. Another limitation is that RESP's force you to put the funds into capital markets which means that in a market down turn like today, you may not have enough money to pay for the kids education. Lastly... RESPs were developed in the 1990s but have not been updated with the cost of university today. If your kid was born in 2022, the future cost of their education is $135k and if they want to specialized degree like medical school or vetrinary school or pharmacy... the cost is estimated to be $250k!!!
With real estate investing you have much more flexibility in terms of how much you can invest each year and when you can access your funds. You also have control over which properties you choose to invest in and when you can start collecting rental income or selling off properties. And best of all—if done right—real estate investments can provide solid returns over time!
Another advantage of real estate investing over RESPs is that it isn’t just limited to funding your child’s education—it can also be used as a retirement plan or as additional income for other family members who may not be able to work due to health issues or disability. That means that even after your child has graduated from university or college, your real estate investments will continue providing returns for years to come.
It's hard enough trying to figure out how to pay for our children's education without having to worry about restrictive rules and regulations surrounding RESPs. Real estate investing offers a great alternative solution - one that provides more flexibility and control while still providing solid returns over time. So if you're looking for an effective way to fund your kids' education - look no further than real estate investing! It's definitely worth considering!
Schedule an appointment with me to see how you can fund your child's education.