How to invest in Batumi property: from the goal to the exit

How do you invest in Batumi property if you do not live here and know the market only from advertising? Step by step and in the right order: first the goal and the budget, then the strategy, the district and the building, the checks, the deal, launching the letting and an exit plan. A mistake at an early step costs the most, so we start with a conversation, not with a shortlist of apartments.

How to invest in Batumi property: start with the goal

The first question is what this apartment should do. Bring a steady income from a tenant, earn money in summer from short-term guests, rise in price by the time the building is completed, or become your home for part of the year and be let the rest of the time. Each goal leads to its own property, and an apartment that is good for one may be weak for another.

The second question is the term. If you may need the money in a year or two, not everything fits: buying off-plan and flipping take time, and selling housing before two years of ownership is taxed at 5 % of the price difference. The third question is how much time you are prepared to spend yourself and how much you will hand over to a manager.

The whole budget

An investment budget is larger than the apartment's price. On top of it come the Public Registry fee (150 lari for 4 working days, 270 lari for 1 day), the notary's services if the deal goes through one, renovation, furniture, appliances and the months while the apartment is prepared for its first guest. Above that we keep a reserve for the unexpected.

A developer's payment plan lets you enter with part of the sum, but until full payment the apartment stays with the developer, and income appears only after the building is completed and renovated. If there is a loan in the scheme, we look at the bank's terms in advance. Georgia has no purchase tax or stamp duty, but families with an income above 100 000 lari pay property tax every year.

Strategy

There are few ways to earn: long-term letting, short-term or seasonal letting, buying off-plan for price growth, flipping, an income property, commercial property and land. Each has its own source of money and its own main risk, and they are gathered in one table on our page about property investment in Batumi.

For a first investment people most often choose a ready apartment for letting: income starts sooner and the risk is clearer. Off-plan and flipping need more time and decisions, but they work too if they are calculated honestly.

The district and the building

The district decides which letting format the apartment suits: short-term letting is stronger by the sea, long-term in residential neighbourhoods. How districts differ for investment is covered on our page about Batumi districts for investment.

The building matters no less than the district: the management company and service charge, the rules for short-term letting, how many similar apartments are for sale and for rent in the same building, and how the developer's completed buildings have survived several winters.

Checks before the deposit

Before the deposit we check the property's legal title: the owner, mortgages, seizures, whether the area matches. If the building is under construction, we check the developer, the plot, the permit and the contract. If the apartment is ready, we look at its technical condition: damp, utilities, windows. Where the risks of buying in Georgia really lie is explained on our page about the risks of buying property.

A legal due diligence check starts from 960 ₾. That is less than a mistake in any of these lines would cost.

The deal, including remotely

Title to the apartment passes after registration in the Public Registry. If you are abroad, the deal is carried out by your representative under a notarised power of attorney with an apostille and a translation, and with the courier preparing it takes one to three weeks. We do not pass money through a representative: it goes from your account to the seller or into a notary's deposit.

A bank account in Georgia can be opened without a residence permit or a local address. How to buy without travelling is explained on our page about buying remotely.

After the purchase: launching the letting

The apartment is prepared for its letting format: renovation, furniture and appliances, photos, listings, a lease with an inventory for a tenant or house rules for guests. We decide who will run the letting: you, your acquaintances on the spot or a management company. And you register as a landlord if the 5 % tax rate suits you.

Exiting the investment

We draw up the exit plan at the time of purchase. Who will buy the apartment from you in a few years, how many similar ones will be for sale nearby, how long the sale will take and what tax you will have to pay. Housing owned for more than two years is sold without tax, while non-residential property is taxed at 20 %. How to calculate the result of the investment as a whole is shown on our page about rental yield.

How much help with an investment costs

An investment consultation starts from 390 ₾: the goal, term, budget, strategy and a plan of next steps. An investment calculation with a property shortlist starts from 1 200 ₾, a property search for a flat fee from 5 400 ₾, a legal due diligence check from 960 ₾, legal support for the deal from 2 220 ₾.

The final price is set after we review the task and agree the scope of work. The registry fee, the notary's charges and taxes are paid at their own rates.