buying house versus RESP

[Pda]

I have a question which is a good investment buying a house and selling it off when I need it for kids university studies or buying RESP and doing the saving. Which will yield more growth.

Currently I am paying $400 on RESP per month for my children. If I put this against mortgage will it be wise or I just continue with RESP for kids university studies.

 

[steaky]

You are comparing oranges and apples!

With RESP, the government pump some money into your child's future, while the government would not do so if you buy a house.

Couldn't you do both?

 

[Pda]

I want to stop RESP and put that money in mortgage as i heard RESP is not at all a good investment. Every other person gives different view. I want advice from someone who had RESP and used it at maturity did it make life easy for them. Did it helped them.

You are comparing oranges and apples!

With RESP, the government pump some money into your child's future, while the government would not do so if you buy a house.

Couldn't you do both?

 

[pie_vancouver]

this is just an example, my resp is 177 per month, total 36k for 17 years and projected value after 17 years is 60k, that's additional 24k, would you not want that?

177 is nothing if you earn a lot,
IMO, do both

 

[Pda]

Is this after administrative deduction. I know initial 2 years all goes in admin fees. RESP companies usually take high fees. In most cases we dont do RESP as soon as child is born. Mine is just for 10 years.

this is just an example, my resp is 177 per month, total 36k for 17 years and projected value after 17 years is 60k, that's additional 24k, would you not want that?

177 is nothing if you earn a lot,
IMO, do both

 

[pie_vancouver]

if you don't like the admin fees, ask your bank, banks also do resp
the good thing here is the government grant (CESG) of $7,200

 

[Pda]

Ok thanks resp can be moved from one financial institute to another? I did not knew. I will consult bank. Hope i dont get hit by penalty

if you don't like the admin fees, ask your bank, banks also do resp
the good thing here is the government grant (CESG) of $7,200

 

[ALRIVAS]

Hi Pda if you put $400 a month in resp at let's say 8% yearly which is a big lie you'll have like $5500 a year now assuming your child is 1 month old 5500x18 years you'll save 99,000 that's very good. Below is the scotiabank resp calculator.
http://investmenttools.scotiabank.com/scotia_resp/1.0.html
If you buy a house and your house cost the $500,000 which is below average GTA price,you'll make in equity being very conservative 5% per year $500,000x5%=$25,000 in only one year you do the math below are the toronto real estate board stats.
The real number for the GTA is average home is $688,181 and the Growth compare to last year is 12.1% per year.

http://www.trebhome.com/market_news/market_watch/2016/mw1603.pdf Monthly records.
http://www.trebhome.com/market_news/market_watch/historic_stats/pdf/Historic_1603.pdf historic records.

 

[Pda]

Its complicated i did not get you. Is home investment better than RESP you are saying

Hi Pda if you put $400 a month in resp at let's say 8% yearly which is a big lie you'll have like $5500 a year now assuming your child is 1 month old 5500x18 years you'll save 99,000 that's very good. Below is the scotiabank resp calculator.
http://investmenttools.scotiabank.com/scotia_resp/1.0.html
If you buy a house and your house cost the $500,000 which is below average GTA price,you'll make in equity being very conservative 5% per year $500,000x5%=$25,000 in only one year you do the math below are the toronto real estate board stats.
The real number for the GTA is average home is $688,181 and the Growth compare to last year is 12.1% per year.

http://www.trebhome.com/market_news/market_watch/2016/mw1603.pdf Monthly records.
http://www.trebhome.com/market_news/market_watch/historic_stats/pdf/Historic_1603.pdf historic records.

If you need more info go to alrivas. com or al@alrivas.com.

 

[scylla]

Its complicated i did not get you. Is home investment better than RESP you are saying

ALRIVAS is a real estate agent and is naturally going to tell you to pick real estate over an RESP. The reality is that there's no guarantee GTA homes are going to continue to rise every year. Homes have been consistently rising for a number of years - but a drop is always possible. As a downtown Toronto home owner, I would absolutely love it if home prices continued to rise at the current rate. But there's absolutely no guarantee that's going to happen.

The honest answer is that there's no wrong or right choice between a home and RESP. This is an individual choice that depends on a number of factors. I would recommend you sit down with a financial advisor who can look at your complete financial profile and suggest options.

 

[ALRIVAS]

I'm sorry for the way I explain things.
Real estate is better than resp.
yes I'm real estate agent and have been selling houses since 2002 and in 2002 the average home cost $300,000 in 2016 it costs $688,181 I didn't make these numbers these are facts.
The reason the real estate keeps going up is because of you new immigrants you have to live somewhere.
There is not enough houses available to keep with the number of buyers,is not my invention is a fact.
The new liberal government increased the number of new immigrant this year to 319,000 no counting 25,000 syrian refugees that by the way are very good people.
I know there many people in this forum that believe they know economy real estate medicine and all the truth is they came to the country a few years ago yet they know it all.

 

[steaky]

The reason the real estate keeps going up is because of you new immigrants you have to live somewhere.
There is not enough houses available to keep with the number of buyers,is not my invention is a fact.
The new liberal government increased the number of new immigrant this year to 319,000 no counting 25,000 syrian refugees that by the way are very good people.
I know there many people in this forum that believe they know economy real estate medicine and all the truth is they came to the country a few years ago yet they know it all.

This is not true for many parts of Canada. There's actually a oversupply of houses in Calgary and real estate prices is dropping..

 

[ALRIVAS]

steaky you're right.
I'm licensed in Ontario and I meant the GTA where I work.
My apologies GTA only and the stats I put are from the GTA.

 

[torontosm]

I know there many people in this forum that believe they know economy real estate medicine and all the truth is they came to the country a few years ago yet they know it all.

That's sort of rich, given that you haven't actually lived in Canada long enough to see a complete real estate cycle yourself!