The Ultimate Buyers Guide for Batumi Vacation Property with Orbi Group

The History of Vacation Property With Orbi Group

Orbi Group was originally a car wash company in the early 2000’s and started by Zaza Zoidze and Giorgi Bitsadze. Zaza Zoidze would eventually stay with Orbi Group while Giorgi Bitsadze went on to form Alliance Group which is another development company in Georgia.

Orbi has built many vacation property in Georgia and and they are all in various stages of completion. Some of the recent Orbi Towers are (Residence, Beach Tower, Twin Towers, Orbi City)

Vacation properties with Orbi are in prime locations on the beach and this is attractive too many investors but with this comes 27/7 activity/music from the beach and it can be quite busy and loud during the season (July to September).

Should You Buy A Vacation Property At Orbi?

If you are going to use the property a couple times a year for your own use then Orbi projects are in good locations with sea views and access to the sea.

If you are buying the property to rent out when you are not there then this is when some issues may arise.

Maintaining your rooms 5 star reviews is very important for occupancy rates as they will start to drop as almost everyone books their rooms based on online reviews. Always compare the reviews of the property management company you are planning to use.

There are many other nice buildings in Batumi to buy apartments and I will describe the steps to finding them below.

Guide on Purchasing Your Next Vacation Property In Batumi

There are a lot of factors to consider when you are thinking about buying a vacation property. This guide will help you understand the process and what to look for.

1 – Research your options
2 – Find the perfect property
3 – Get pre-approved for a mortgage
4 – Negotiate with the seller
5 – Find good property management

Step 1: Research Your Options

Spend some time in Batumi and tour the city to see which locations appeal to you the most. Some like being near the sea, while others like the old city and others prefer the peace and quiet of the mountains near Batumi.

One thing to note is foreigners cannot own agricultural land in Batumi and almost all land outside of the cities and towns is agricultural. There is a process to convert agricultural land to multi use but the process is beyond the scope of this article.

Be aware that there is lots of action and activity near the sea and Old Batumi almost 24/7 in the season( July to September) so if you are looking for a vacation property to get some rest and sleep at night it’s best to avoid these areas.

Step 2: Find The Perfect Location

If you’re looking for a place to invest in, the first step is to find the perfect location. The best locations for vacation properties are usually those that are close to tourist attractions and have lots of nearby amenities. This is where you should start your search for vacation properties.

Then find a property that fulfills your vacation needs. You don’t care how much ROI your vacation property earns if you don’t enjoy it while you are there.

Step 3: Determine Your Budget

The typical down payment for a vacation home has been 20% of the purchase price. However, you can use a down payment as low as 10%.

If you are using financing to buy, go to your bank first and see what amount you can get pre-approved for.

Some developers will give you guaranteed approval on a loan with as little as 10% down payment but the loan must be paid before the construction of the building is complete.

If the loan is not complete before the construction is complete most developers have a cooperation with local banks to transfer the loan there but the interest rates are usually very high.

Step 4: Choose Your Offer Strategy

Negotiating is acceptable in Georgia but if you are a foreigner trying to negotiate a price on a property you can expect a lot of resistance as a lot of Georgians think most foreigners have a lot of money.

Using a local agent or having a Georgian friend do your negotiations for you usually works better.

Step 5: Locate Good Property Management

Find the right management team and you will have high occupancies and plenty of 5 star reviews that leverage itself into higher occupancies and raving 5 star reviews.

Finding the right property management will determine if your vacation property is profitable or not.

What To Look For In A Good Property Management Service?

There are several indicators to look for when selecting a property management team to look after your vacation property.

Transparent– delivering the best service at the price determined in the lease agreement
Marketing- Look at the booking website and occupancy history to see if they have a good marketing team that keeps occupancy rates higher than the industry average.
Available– Is their office accessible and clean? Are there service staff ready to serve?
Good Value– Is the revenue share fair for both parties? Some property management companies offer 80/20% split while others are 50/50% split. It’s important to determine the service you are getting for any revenue split you decide on is fair.

Conclusion

Should you buy a vacation property in Orbi Towers? Every place has its pros and cons and as long as you are aware of these before you invest you can always make the right decision for you.

If you own a vacation in property in Orbi Towers already, or are thinking about buying one, Proprietas offers an option for professional property management for Orbi buildings and towers. Contact us today to learn more.