Common investor mistakes when buying property in Georgia

Introduction

Buying property in Georgia remains attractive for many investors thanks to relatively simple registration, tourism flow and growing demand in cities like Batumi and Tbilisi. Yet these advantages can lead to common mistakes that reduce expected returns. This guide highlights frequent pitfalls and practical steps to avoid them.

Why these mistakes matter 💡

A seemingly small oversight—missing an easement in the title, underestimating operating costs, or buying in a declining micro‑location—can turn a profitable deal into a long‑term headache. Successful investment starts with careful research and realistic calculations.

1) Insufficient market and location research

• Check local infrastructure, transport, and municipal development plans.
• Compare similar properties and recent sales trends in the area.
  Action: shortlist three comparable neighbourhoods and weigh pros and cons for each.

2) Skipping legal due diligence 🛡️

• Verify ownership, encumbrances, and permits.
• Ensure contracts clearly define payment terms, handover conditions and warranties.
  Recommendation: engage a local lawyer before paying an advance.

3) Ignoring developer and contractor reputation

• Review completed projects, delivery timelines, and client feedback.
• Ask who will manage the property and what service fees apply.
  Why it matters: poorly managed buildings often suffer from high maintenance costs and tenant turnover.

4) Miscalculating returns and costs 📊

• Base your ROI on net income after management fees, taxes, repairs and vacancy periods.
• Factor in realistic rental demand (seasonal vs. long‑term) depending on location.
  Tip: build a conservative and an optimistic scenario to test resilience.

5) Skipping technical inspection

• Inspect structure, insulation, plumbing and electrical systems.
• Hidden defects can lead to unexpected renovation expenses.
  Best practice: hire an independent surveyor before finalising the purchase.

6) Underestimating taxes, fees and utilities

• Learn tax obligations for residents and non‑residents and how they impact net yield.
• Include condominium fees, utilities and potential management costs in your model.

7) Currency and financing risks 💱

• If income and costs are in different currencies, consider FX volatility.
• Check local mortgage conditions and whether financing is available to foreigners.
  Practical step: maintain a cash buffer for shortfalls or currency swings.

8) Emotional or rushed decisions

• Avoid pressure to sign immediately; time pressure is a common sales tactic.
• Pause to compare alternatives and recheck critical documents.

Quick checklist before you buy ✅

• Full legal title and permit review.
• Independent technical inspection.
• Market analysis and realistic rental projections.
• Reputation check of developer and managers.
• Net profitability calculation including all costs.
• Contingency plan for vacancies and repairs.

Final notes

Treat a property purchase in Georgia as a business decision: research thoroughly, validate documents, and model finances conservatively. These steps will remove most common pitfalls and secure better long‑term returns.

If you'd like, our team can assist with legal checks, market analysis and finding properties aligned with your goals. Start exploring options at https://buyhome.ge/en or search listings at https://buyhome.ge/en/search. Contact us — we’ll help you choose the right property without unnecessary risk.