Investing in real estate, specifically in an apartment, can be a very profitable venture, but it is necessary to define and plan each step correctly.

What should I consider when investing in real estate, in particular an apartment? 

1. Define investment goals

Before you start looking for an apartment, you should first sort out your goals and priorities. Are you looking for long-term or short-term income? Do you want to rent or sell? Answers to these questions will help you understand how to choose the desired apartment.

 

2. Choose the right location

The location of real estate is paramount. Look for apartments in areas where potential and opportunities are clearly growing. Also important is the infrastructure of the area, the availability of transport, schools or recreational areas. According to our observation, the most popular investment location is Tbilisi, namely Saburtalo district.

3. Determine the expected annual profit

There is an increasing trend of real estate prices in the Georgian market. An apartment bought a few years ago is significantly more expensive today. Keep in mind that if you buy an apartment under construction, this apartment will cost 30% more when finished. If we take 2 years as the average construction time, then we get 15% annual growth, which is quite high. 

4.  Realistically evaluate the property to be purchased

If you are planning to rent an apartment and, therefore, make a long-term investment, you should determine in advance the average income you will receive per month. You can use a simple formula for this: divide the total cost of the apartment by 120, so you can calculate how much this apartment will cost you per month for 10 years. If this number is close to the market price, then your investment can be considered successful.

As you can see, various factors can affect the success of the investment. If you know in advance what is the most favorable condition for you, you will be able to earn long-term passive income.