Tham khảo tài liệu 're academic press private real estate investment_7', tài chính - ngân hàng, đầu tư bất động sản phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | The Tax Deferred Exchange 185 to justify the cost of an exchange. An interesting empirical study would examine a number of exchanges to determine if perhaps one should not exchange unless one acquires a property at least or 2 times the size of the disposed property. Suppose our investor merely retained his original property for the same total time of 12 years. Because he saves mid-holding period sales costs he has a higher return in both IRR and NPV 36 314 terms. Note in Figure 7-5 that while the total sales price in the two strategies is greater for the exchange strategy on the left the owner s share is greater on the right when no exchange takes place. We see that under these assumptions the primary beneficiary of the exchange is the broker. Several conclusions may be drawn from this. Once again we confirm the fact that pursuing tax objectives for their own sake is counterproductive. Another is that the primary beneficiaries of some exchanges are brokers. Commissions make up the majority of real estate transaction costs. In order to offset these transaction costs the investor must be able to achieve significant economic gains. There is a limit to the benefits of releveraging via an exchange and these benefits may not be sufficient to offset transaction costs. DATA ISSUES Data providers sometimes included a question Was an exchange involved binary Y N field to answer the This is important when studying Allocation of Sales Proceeds 2 173 505 FIGURE 7-5 Allocations with a and without b exchanging. Allocation of Sales Proceeds 1 760 814 186 Private Real Estate Investment markets to determine how tax policy affects investor behavior. However a refinement is necessary. For this data field to have maximum value it is important to identify how the exchange fits into the transaction. If the sale involved an exchange in which the seller was the last in a series and did not further exchange his property there is a different effect than if the seller became an .
