Investment SAE Practice Exam

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What is the term for the duration a property is held before being resold?

Acquisition period

Holding period

The term for the duration a property is held before being resold is "holding period." This concept is critical in real estate investment as it describes the time from when the investor purchases a property until they sell it. The holding period can significantly affect the investment's performance, influencing factors like tax implications, appreciation in property value, and overall return on investment. A longer holding period might allow for greater appreciation, while a shorter one may be strategic for quick profits, thus impacting the investor's strategy and decision-making.

The other terms listed do not accurately capture this concept. The acquisition period typically refers to the time taken to acquire a property, not how long it is held afterward. The appreciation period is not a widely used term in real estate; it could imply the time taken for a property to gain value, but it does not specifically denote the duration of ownership. The sales period would refer to the time taken to sell a property once it has been listed, rather than the total time it is owned. Therefore, holding period is the most appropriate term for this scenario.

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Appreciation period

Sales period

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