Types of Exit Strategies
Direct Sale
Sell the property on the open market for maximum price. Best when market conditions are favorable and you have held long enough for tax optimization.
Best for: Properties that have appreciated significantly
1031 Exchange (Reinvestment)
Sell and immediately reinvest in another property to defer capital gains tax. Available in some jurisdictions.
Best for: Active investors building portfolio
Hold and Refinance
Keep the property but extract equity through refinancing. Access capital while maintaining ownership and rental income.
Best for: Properties with strong cash flow
Seller Financing
Act as the bank for the buyer. Receive regular payments with interest over time instead of lump sum.
Best for: Creating passive income stream
When to Exit: Key Indicators
Tax Optimization Window Reached
In Hungary, capital gains tax drops to 0% after 5 years. In Georgia, holding period benefits apply. Time your sale to minimize tax burden.
Market Peak Indicators
Rapid price appreciation, declining rental yields, increased speculation, and new construction boom often signal market peaks.
Better Opportunities Available
When you identify higher-yield investments, it may make sense to exit current positions and reallocate capital.
Life Circumstances Change
Retirement, relocation, or need for liquidity may dictate exit timing regardless of market conditions.
Exit Tax Optimization
| Location | Holding Period | Tax Rate |
|---|---|---|
| Hungary 🇭🇺 | 5+ years | 0% |
| Georgia 🇬🇪 | 2+ years | 0% |
| Israel 🇮🇱 | Any | 25%* |
*Exemption available for primary residence only
Planning Your Exit?
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Legal Disclaimer
The data and returns presented are for illustrative purposes only and are based on past performance or market estimates. This information should not be considered as a guarantee of returns, investment advice, or a substitute for individual tax advice. Real estate investment involves risks, including regulatory changes, currency fluctuations, changes in property condition, and local market conditions. RealFix does not guarantee the displayed returns and is not responsible for losses resulting from investment. It is recommended to consult with a Certified Public Accountant and tax consultant before making investment decisions. E&OE.
