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RRSP's and purchasing land property.
April 17, 2013
11:41 am
kija
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I have some funds invested in an RRSP and i'm interested in purchasing a parcel of land that i one day wish to build upon.

Is it possible to use my RRSP savings to do this without penalty/tax considering i've never purchased a home or property in the past. i.e. first time property investor.

Kijasf-laugh

April 17, 2013
1:08 pm
kanaka
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kija said

I have some funds invested in an RRSP and i'm interested in purchasing a parcel of land that i one day wish to build upon.

Is it possible to use my RRSP savings to do this without penalty/tax considering i've never purchased a home or property in the past. i.e. first time property investor.

Kijasf-laugh

Google RRSP home buyers plan. You will see this site and other results based on your province.

http://www.cra-arc.gc.ca/tx/nd.....r/hbp-rap/

April 18, 2013
7:10 pm
James
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Hi Kija,

Welcome to the forum. Kanaka posted you some good information. I'm not sure if you were referring to owning investment property within the RRSP (it sounds like you didn't intend to build the home right away). To qualify for the Home Buyer's Plan, you must buy or build the home on the land within 1 year and you must occupy it as your primary residence.

Remember that if you do use this plan, the RRSP money must be paid back to your plan (you can't use it then not pay it back). The benefit of course, is that you don't pay tax on the money you withdraw to buy the home.

Let me know if I'm misreading or if you had other questions.

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