As a lock-in strategy for brokerage customers in the real estate transaction cooling period, if you are a seller, consider selling or converting to a corporation after donating the real estate in advance before selling, and if you are a buyer, you can establish a family corporation, etc. in advance based on the cash assets that are the purchase funds. We looked into the cash utilization strategies used. Because the results vary depending on the time of purchase of real estate, the purchase price, and the market price at the time of succession, it is important to accurately confirm and implement this strategy in advance on the amount of taxes involved.

During the cooling off period for real estate transactions, it is not easy to close the sale itself and the number of real estate transactions decreases compared to before, so rather than losing customers whose transactions are not completed, it is possible to tie them up with this pre-succession strategy and attempt transactions through follow-up management. If a sale is not completed, it is easy for customers to move elsewhere, but the succession strategy is different. Since it usually takes about five years from establishing a succession strategy to implementation and follow-up management, there is almost no customer defection. If you are involved in a succession strategy together, you will have the opportunity to be involved in buying or selling first during brokerage. The problem is that most real estate customers do not have cash assets. Most real estate succession strategies involve a large amount of cash. Although hundreds of millions to billions of won in tax payment resources are required, customers who simply own real estate are in trouble because they do not have the resources to pay acquisition tax, let alone gift tax at the time of succession. If you think about it, it is not something to be happy about when real estate prices rise. If you want to sell it, you have to pay taxes on nearly half of the profit, and if you want to pass it on, you have to pay taxes on almost half of it. However, there is no guarantee that the property will later be sold at the price expected. Of course, considering that real estate prices skyrocket at certain intervals, I don't think it will be sold for less than the purchase price, but that is also impossible to guarantee. 

Most people who own high-value real estate have poor judgment as they age. As I turn 70, I feel that my decision-making ability is significantly different compared to 10 years ago. This is why you need to make decisions about inheritance and gifts before it is too late. When purchasing or selling real estate, the tax relationship must be clearly confirmed before proceeding, and the succession strategy also affects the rate of return.
No matter how well you purchase a property in a good location at a good price, if you have to pay half the tax when you pass it on later, it is in vain. Like life, real estate is a tragedy when viewed from afar in the long term, but a comedy when viewed up close and briefly. Even if real estate prices rise right away and it may seem like a good thing, in the long run it will all be collected in taxes. This is why tax strategies should be prioritized when investing in real estate.