High Yield Investment PropertiesUnique Investment Opportunities
High Yield Investment Properties
Sterling New Life provides property investors with a unique opportunity to acquire properties that are leased to seniors with the following benefits:
- 5 year lease term with the tenant having 7x 5 year options to renew.
- Gross rental yields of 10% – 20% above market rental rate, growing by a fixed 2% per annum.
- An all inclusive low property management fee.
- The Sterling New Life tenant invests into the Sterling Income Trust, which generates the income distributions for the tenant to pay the rent.
- The rent is paid to the landlord monthly in arrears.
- If for any reason there is a rent shortfall from the Sterling Income Trust distributions, the tenant will not be asked to pay any top up rent directly. Any shortfall will be paid from a redemption of capital from the tenant’s investment.
- The Sterling Income Trust investment amount also acts as a security bond for any potential damages.
- Where a Sterling New Life tenant is not ready to start the lease in the short term, or may have to sell their existing property before moving in, the landlord may choose to get a short term tenant.
- The landlord is free to sell a property with a Sterling New Life tenant in place. The lease will move with the property.
- While there is a Sterling New Life tenant, the landlord has the opportunity to sell the property to Sterling as follows:
a. first offer to sell the property to Sterling at a price set by the landlord,
b. last offer to sell the property to Sterling at a price equal to an offer being made to purchase the property from the landlord,
c. an option for Sterling to buy the property from the landlord if the landlord does not wish to renew the lease six months prior to the end of each lease term, with the price being determined by a licensed valuation, less sales commission.
- The Sterling New Life lease can be terminated by the tenant with 180 days notice.
- When the tenant has given notice to terminate the lease, the landlord can then choose to request Sterling to secure a new Sterling New Life Lease tenant, or just put in place a regular short-term tenant.