2418.11.2022
Reading time: 2 minutes
Author: Sea Inside

GEORGIA: HOW MUCH YOU CAN EARN ON REAL ESTATE

Time and money. These are the two fundamental components of investment. “How much to invest” and “how quickly the investment will pay off” - it is enough to decide on the answers to these questions, and the profit is guaranteed.

At all times, one of the most stable ways to ensure a stable income has been investing in real estate. However, in order for capital to generate income, it is necessary to correctly draw up a business plan. Together with experts from Sea Inside, we will analyze whether it is worth investing in real estate in Georgia.

How to choose the right property for investment?

Before buying an apartment, you should decide exactly how it will generate income. There are the following types of investments in real estate: for the purpose of rent and for the purpose of resale.

In the first case, it is more profitable to buy an already finished apartment - in order to quickly start renting it out and earning money. In the second case, on the contrary, it is more profitable to buy at the construction stage (or even better - at the start of sales, when the developer has just put up a new object for sale). The price of real estate at the excavation stage is the lowest. As construction progresses, it rises several times, and by the time the house is completed and put into operation, it reaches the market bar.

However, that's not all. Having become the owner of an apartment in a built house, you can dispose of it in different ways. You can sell it in a black or white frame - this is already a big benefit (about 25-30%). However, it is even more profitable to make repairs, equip and sell on a turnkey basis. So you can earn about 35-40%.

All three types of investments in real estate - rent, sale of a white frame and turnkey sale - are actively used by investors. Entrepreneurs from Israel, Russia, Belarus, Ukraine, the USA, Europe, Turkey and Canada buy not one, but several apartments in Georgia at once - sometimes whole floors.

Why Georgia?

Many factors can be named in favor of this country, however, from the point of view of investment attractiveness, two are decisive. These are affordable housing prices and high demand. You can buy an apartment in a white frame from 40 thousand dollars (in Europe or Turkey, on average - for 250 thousand and more). Another good thing is the interest-free installment plan. You can make an initial payment (usually 30% of the cost), and pay the rest in installments over 12 to 36 months (monthly or quarterly). And no commission. This is very convenient when you don't have the whole amount on hand. In extreme cases, you can take a mortgage (rate from 8% in dollars).

High demand is provided by millions of tourists visiting the country every year. That is why the most popular cities for buying an apartment are Tbilisi and Batumi. Real estate in these cities attracts investors with its high payback. Due to the increased demand for rentals, investments in apartments return in 5-7 years.
Did you like the article?

See also