Pathology and diagnosis
The 7 costliest mistakes. And the 7 fixes.
No moral judgement: the people who make these mistakes are usually intelligent people with bad information. This is the clinical list — symptom, cause, treatment.
01
Buying off-plan without vetting the developer
Georgia has no buyer-protection system comparable to the EU’s. Pre-sale can be an excellent price lever — or capital locked in a stalled site. The difference lies in the developer’s track record, the SPV structure and the contract clauses.
The fix
Mandatory developer due diligence: delivery history, financials, permit status, delay penalties in the contract. Always before the deposit.
02
Trusting someone who doesn’t live on the market
An agent operating remotely, or visiting Batumi once a year, doesn’t know the real dynamics: price shifts by district, delivered finish quality versus promised, the actual reliability of local property managers. The insider advantage can’t be bought on Google.
The fix
Demand a resident counterpart, locally registered, with verifiable relationships on the ground. If they can’t physically take you to a construction site tomorrow morning, they’re not an insider.
03
Overestimating brochure yields
Developers advertise returns "up to 15–20%". But gross is not net: subtract the management fee (typically 20–30% of rent), vacancy, maintenance, taxes (5% on rent) and banking costs. Verified market data points to an average gross of 7.4–8.6% (Galt & Taggart 2025) — excellent by European standards, but to be converted to net honestly.
The fix
Require a full P&L before any offer: gross, line-by-line costs, expected net in three occupancy scenarios. If the seller won’t do it, have it done by someone who isn’t selling.
04
Not structuring taxes before buying
Buying as an individual who is tax resident elsewhere can mean reporting obligations, monitoring regimes, potential double taxation and constraints on fund transfers. Structuring first — Georgian residency, IE with Small Business Status, or a setup without changing residency — completely changes the operation’s mathematics.
The fix
The right sequence is: tax analysis → structure → purchase. Never the reverse. It costs one consultation; it saves years of mistakes.
05
Choosing the wrong district
Not all Batumi districts have the same exit liquidity. Some areas combine high supply with weak rental demand. Proximity to the sea isn’t enough: the boulevard section, the service infrastructure, the target tenant profile — and the permitted future supply — all matter.
The fix
District map before project: new-supply pipeline, real occupancy rates, actual rents. Buy where the tenant wants to live, not where the render looks best.
06
Not planning the exit
Buying without knowing how and when you’ll exit is the most expensive mistake. Georgia has no structured MLS: exit liquidity depends on district, asset type and network. Without a local network you pay the gap — in time or in price.
The fix
The exit is designed at entry: horizon, typical resale buyer, sales channel. The tax side helps: zero capital gains after 2 years of ownership.
07
Moving capital without a banking strategy
Georgian banks — Bank of Georgia, TBC — apply strict KYC on significant transfers. Arriving without an open account and source-of-funds documentation means blocks, follow-up requests and lost weeks — sometimes with a preliminary contract expiring.
The fix
Banking planning precedes the purchase: account opening, a ready source-of-funds dossier, a defined transfer channel. For large amounts dedicated instruments exist — we cover them in the consultation.
All seven mistakes share one root: buying before analysing.
My method exists to reverse that order. If you want to see how, read the 5 steps — or bring me your case in a call.