Buying a property is a serious decision, which should be made with enough patience. Nowadays we have unlimited options and limited resources, which can be confusing. That’s why we might take hours to find the right suit, the right bag or the right brand for our new gadget. It’s even harder to find the right brand of a car. In general, as the number of our investment increases, the more we have to consider our options. We all know that real estate can be the most stable and safe investment, but only if you know where and how to do it.
If you are planning to invest in a property in Tbilisi, Georgia, Realtyguide has several tips & considerations for you:
Make Your Investment Solid:
Invest in a solid building, which is made of high-quality materials. Sometimes it might seem like a good decision to choose quantity over quality, but real estate is definitely not the case. Buildings are built to last and all the zeros you are paying for your next property should last too.
As nothing is permanent in our world (except land), we all know from our College/University’s accounting class that everything depreciates. The value of property can decrease over time, so make sure to invest in something, which has a promising lifespan.
If you can, check out the developer of the building/property you’re planning to buy. Research their other projects and see what kind of materials they are using. Make sure they have a good reputation in the market.
Choose The Location Wisely:
Start thinking about the right location by asking yourself the right questions:
- Is it fit for my lifestyle?
- Is it easily accessible?
- Is it liquid?
You should definitely consider your lifestyle and your needs before making a purchase. Will the traffic interfere with your busy schedule if the property’s far from the center? Maybe you need a green area/park nearby to enjoy your evenings without the struggle of driving.
After settling down with your personal preferences, it’s time to think about accessibility and liquidity of location. Is public transport easily reachable, or is the parking situation acceptable for you? Make sure your property is close to supermarkets/pharmacies. What kind of activities does the neighborhood offer? This stuff might not sound that big of a deal from the beginning, but you’ll understand their importance if there’s a lack of it.
Another thing to consider while purchasing a property, is the liquidity of your investment. Liquidity basically means, how easy is it to convert your assets to cash. If there’s a possibility for you to sell your property in the future, I’d suggest calculating the liquidity percentage before making a purchase.
Look For Good Investment Opportunities:
There are lots of property options in the real estate market, but the “old, but gold” term can describe the unique part of buildings in Tbilisi, Georgia. The properties in older districts of Tbilisi are the ones with major investment potentials. These buildings might be old but made to last. They usually were built during a soviet union or maybe even earlier and definitely are the pearls of Georgian culture. Options, which are offered by old districts of Tbilisi, are usually underrated with huge makeover and investment potential.
One of the successful and famous examples of renovating old to gold is the “Fabrika” case, where the “Adjara Group” company bought an old soviet union sewing factory and made it to the hostel, with lots of interesting details to it. Today, it’s one of the most crowded places to hang in Tbilisi, probably with one of the highest ROI too.
Another popular place is the “New Aghmashenebeli” street in Tbilisi, which was brought back from the ashes and became one of the most popular gathering places among the tourists.
Now that we are done with the tips about buying property in Georgia, I’d like to focus on suggestions and considerations you should make while purchasing a property.
Do Your Research/Appraisals:
The list of effective ways of finding a property starts with the real estate platforms, which tend to be the most productive tool among the Georgian community. Start your research by visiting Myhome to get access to over one hundred thousand listings, provided by Georgian real estate agencies and owners.
Also, consider doing an appraisal for any property you consider buying. Doing appraisals is an effective way to evaluate your investment and it deducts the right pricing based on the following analysis:
- Revenue-based analysis
- Cost-based analysis
- Comparison analysis
These methods are effective ways to know how much exactly you should spend per square meter in the property you chose to purchase.
Other Important Things To Consider:
Make sure to ask for a geological analysis of the land where the property is located. You can either get it from the developer or the owner of the property. If you can’t access the information, make sure to investigate the land situation nearby. Soil is a very important factor while buying real estate in general. As for Georgia. it’s famous for having a wide range of soils and some of them are not compatible with constructions in the long-run. If the soil’s main structural component is sand, it won’t be able to hold the foundation of construction properly and as time passes, it might result in problems with walls and ceilings. If it doesn’t have a proper drainage system, it might result in a weaker foundation and so on.
Although it’s natural that most of the developers are familiar with this type of information, sometimes it’s not the case, so if you are planning to invest big into something, it’s definitely worth it to have this type of information.
Legal Side Of Documents:
Before making a purchase, make sure to ask for the cadastral code of the building/property from the owner/real estate agency. Go to the Justice hall of Tbilisi or visit the public website to access the information about ownership, existing mortgage and the exact characteristics of the property. Make sure the legal side of your investment is nice and clean before proceeding and signing any papers.
In general, all the information about the property purchasing process is accessible at the justice hall, but it’s still a time-consuming process.
You can do all of the listed steps by yourself or contact local real estate agencies/investment opportunity companies, like Realty Guide, for professional help.
These are the tips & considerations I think are important for buying property in the Georgian real estate market. If you’d like to know more about the Georgian real estate market, check out Different Property Types available in Tbilisi.
Ref: https://realtyguide.ge Posted by Nani Enukidze | Oct 10, 2019