Welcome to VerticalNews!
RECEIVE OUR FREE NEWSLETTERON ECONOMICS
New housing economics research from Mississippi State University outlined
July 23rd, 2010
According to a study from the United States, "Choosing the optimal holding period is an important part of real estate investment decisions, because ''when to sell'' affects ''whether to buy''. This paper presents a theoretical model for such decision making."
"Our model indicates that the optimal holding period is affected by both systematic and non-systematic factors market conditions (illiquidity and transaction cost) and property performance (return and return volatility). Other things being equal, higher illiquidity and transaction costs lead to longer holding periods, while higher return volatility implies shorter holding periods. Our empirical application suggests...
Click here for more articles from Housing Economics
Source: VerticalNews Economics (2010-07-23)