| 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 |