Buying to rent in Georgia: test the budget beyond the advertised yield

Geostat's preliminary second-quarter figures, released on 18 September, show construction activity contracting while Georgia's overall economy expanded. This is a reason to examine project-level evidence carefully, not a forecast of a particular apartment's rental income. An investor still needs a budget tied to the actual property. Geostat

An illustrative calculation

Suppose the purchase costs $100,000 and furnishing and initial work add $10,000. The capital committed is $110,000. Assume rent of $600 for ten occupied months: annual receipts are $6,000. Deduct $1,500 of operating expenses and the balance is $4,500, or about 4.1% of the initial capital before tax and financing. These invented assumptions are not observed Georgian market averages or a quoted investment offer.

Simply multiplying $600 by twelve and dividing by the purchase price produces 7.2%. That figure omits the fit-out, empty months and expenses. Neither calculation predicts a sale price or capital gain.

Check the inputs before committing

For an unfinished property, request evidence of progress and read the agreed handover conditions. For a rental estimate, compare similar homes and distinguish advertised rent from an achieved rent. Ask which maintenance, management and replacement costs are included. A reserve for repairs should remain visible rather than disappearing inside a headline yield.