“The Residences on Owen is comprised of a group of highly experienced seniors housing professionals who wish to offer a safe and refined residential environment, sensitive to the needs of its residents and their families while providing a unique opportunity for purchasers of investment real estate.”
When Ballantry, Gillam, and Traditions were planning the Residences on Owen, they wanted to create a model that was a win-win for its senior residents and for the clients who purchased condominiums there. It’s for that reason they developed a management company with a unique program called the Invest Select Rental Program (ISRP).
When opted into, the ISRP allows condominium purchasers to benefit from the three most important pillars of real estate investment: rental income, market appreciation and mortgage pay-down, while all day-to-day property management tasks are taken care of including the payment of property taxes and maintenance fees.
The ISRP delivers positive monthly cash flow to each purchaser with a five-year condominium lease in place from day one. Upon expiration of the lease, the lessee will have the option to purchase the units from the owners at the then current market value with a stipulation it will be for no less than the original purchase price. This commitment creates a safety net and gives purchasers peace-of-mind going into the sale. It also helps to avoid being surprised by a lot of typical pitfalls that can occur if purchasers decided to lease the unit themselves.
The ISRP is perfect for real estate investors that believe real estate is a great wealth building product but don’t want to be hands-on with all duties and responsibilities. The program combines monthly cashflow, mortgage paydown, and the potential for market appreciation while limiting the downside in the event of a market correction.
Invest Select Rental Program (ISRP) leases with the residential condominium unit investors carry with it an optional purchase provision that, upon expiration of the lease, the tenant (Traditions Seniors Housing, in partnership with Ballantry Homes and The Gillam Group) may purchase the unit at the then-current fair market value of the unit thereby giving each investor a rock solid reliable predefined exit strategy.
This exercised option gives purchasers a reliable pre-defined exit strategy while providing a completely passive investment opportunity. ISRP removes many risks associated with the typical landlord and tenant relationship and the potential stress these types of investments can create. With the built in Correction Protection, the investment becomes a reliable safe method of participating in rental real estate in the seniors housing sector.
The Invest Select Rental Program features our Fail-Safe Feature. This feature guarantees, on the exercising of the purchase option, should the market be in a correction, the purchase price shall be the greater of a) the then current fair market value or b) the original purchase price the investor paid for their condominium.
Q: If my unit doesn’t have a tenant, do I still receive my rent?
A: Yes, The Invest Select Rental Program ensures that monthly rents are paid as agreed regardless of occupancy status.
Q: Am I responsible for maintenance and repairs to the unit during the term of the lease?
A: The Invest Select Rental Program includes all maintenance and repairs as well as special assessments if they occur.
Q: Do I have to sell my condominium to management after five years?
A: Yes, if the Lessee exercises the option to purchase. Buyers will have the opportunity to participate in advance of other purchasers for future developments.
Q: How will fair market value be calculated in 5 years?
A: We will hire an AACI certified appraiser qualified and approved by The Royal Bank of Canada to conduct all appraisals and determine then current market values using the comparable market approach.
Q: What if I need to sell my condo before the five-year lease expires?
A: Investors are free to sell their property during the lease term with the new buyer’s assuming the covenants and obligations contained within the Invest Select Rental Program lease.
Q: Can I go see my unit?
A: You are welcome to visit the building anytime by appointment made through the concierge or building administrator. To respect our resident's privacy viewing the actual occupied unit is not permitted.
Q: Can I move my parents into my unit?
A: No, owners are not permitted to lease their units other than through the Invest Select Rental Program. Friends and family of owners will receive special occupancy cost pricing through the building management.
Q: How long will construction take?
A: We anticipate construction to take 2.5 years from the date of breaking ground.