Hold Period

The hold period is the length of time the property is expected to be owned before it is sold and the proceeds distributed. It is set by the sponsor in the offering and it frames every projection: the IRR, the equity multiple and the appreciation are all calculated over that span. It is a plan, not a promise. Most offerings give the sponsor discretion to sell earlier if a strong offer arrives, or to extend if the market is poor when the window opens. A "five to seven year" hold means the sponsor is targeting five and keeping the option of seven.

Selling costs money, 5 to 8% of the price, so a property needs to appreciate at least that much just to break even on the exit. That argues for longer holds. Investors want their capital back and sponsors want their disposition fee and promote, which argues for shorter ones. Five to ten years is where those pressures usually settle. The business plan matters too. A stabilised rental with no work to do can be held indefinitely. A renovation play has a natural end when the work is done and the rents are raised, and sponsors like to sell soon after so the improvement shows up in the price.

Treat the top of the range as the commitment. If the hold is five to seven years and there is no secondary market, plan for seven. The money should be money you will not need before then. Longer holds smooth returns. Rent keeps arriving, and the exit lands in whatever market exists at the time, so a longer hold gives more chances of a decent one. Shorter holds concentrate the outcome in a single sale. On Threeworld, the hold period is part of the offering terms on the platform. Where a platform publishes it, it appears with the listing. Where it does not, the offering document on the platform will state it.