The Journal of Real Estate Finance and Economics
Volume 8, Issue 1, Article 5 (Abstract)
Title:
The Tax-Induced Holding Periods of Real Estate Investors: Theory and Empirical Evidence
Author:
George W. Gau and Ko Wang
Abstract:
This article reexamines holding period decisions in real estate investment. It develops and empirically tests a holding period
model recognizing not only taxes but also refinancing and investor-specific determinants. Based on a sample of over 1,000 real
estate transactions with observed holding periods, the results of our tests support the conclusion that investors’ consumption
and investment preferences and prevailing markets interest rates are more important than tax issues in determining the holding
periods of real estate investors.
Keywords:
Real estate investment, holding period