Written by Emil Goncharov

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After you completed a market research and decided to invest in real-estate in Georgia, you would need to create a business plan based on your budget to understand the potential profitability in your investment. In order to be more accurate, you would need to add as many factors to your business plan to avoid any future surprises. 

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The costs of every type of real-estate investment in Georgia may be different and the prices will depend on the connections you have (and even the language you speak). It is better to use a local person who is familiar with the costs and who will speak with all local people for you as it may save you money. 

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Property Purchase Costs​

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• Local Lawyer - Guidance in the purchase process and contracts - $300-$1500

• Notary - Around $400 (the law dictates the price)

• Real estate agent - 0 (only the seller pays the agent commission)

• Funds transfer - Depends on your bank agreement

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Renovation

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• Black frame to ready to use condition - Up to $250 per m2

• White frame to ready to use condition - Up to $150 per m2

• Old apartment renovation - Vary (you can use us for a quotation)

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Monthly Payments​

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• Property Management - 10%-25% (of your monthly property income)

• Electricity - Around $35 for a 2 bedroom apartment (depends on the use)

• Water - Around $15 for a 2 bedroom apartment (depends on the use)

• Gas - around $50 in the winter and $10 in the summer.

• Municipality cleaning payment - Around $5

• Rental Income tax - 5%-20% (yearly)

• Land / Property Tax - Up to 1% (yearly)

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Property Selling Costs​

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• Real estate agent - 3%-5% (only the seller pays the agent commission)​

• Capital gains tax - 5% / 20% (Depends on the property purpose and type)​​

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On the other hand, in any business plan, we also want to address the potential revenue. In order to fully understand how much you can rent a particular property, whether it is short term or long term, you need to complete a market research. For example, in the case of a Flip deal, you have to know the selling price of the property after finishing the renovation based on the area of ​​the property, its size, type of building, floor and more.

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To understand what the expected income from a particular real estate investment is, you can contact us for guidance on conducting a self-study or to schedule a consultation meeting and get rental prices per square foot per neighborhood and average sale prices per neighborhood.

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