Hotel room invesment in Batumi,Georgia worth it ??? Accepting crypto also

#2
Batumi is an unusual city, I've been there and I have conflicting impressions of it. On one side, it's developing really fast, it has some nice views, tourists and expats. On the other side, it still has a post-soviet vibe to it, old creepy commie buildings right next to the new developments, shady taxi drivers, etc. It's a polarized city: a lot of poor people and some rich visitors (for poker cash games, the blinds are 10 20$. Which means you gotta sit down with about 4k for only one session. Who plays them? I don't know, probably ppl from relatevely close countries where gambling is prohibited).
I would be weary about transferring cypto to an unknown agency. You can, however, pay with cash (you can cash out btc OTC somewhere and fly over, they don't usually check the luggage but if they do, I assume you can get away saying you're there to gamble, there are many casinos). The bank asks no questions, you deposit it and buy the apartment. The occupancy rate in those new hotel rooms is quite low, I remember keeping an eye on how many windows light up at night, there were less then 10%. If you feel like you're over exposed to crypto and you urgently need to diversify in a non-CRS way, it might be an option. Georgia is not yet reporting to CRS. However, not sure if the flow of income would or would not get reported later or if you can trust the agents to be honest in giving you the rent money (what if they rent it out without you knowing? hard to know without actually being there).
 
Reactions: troubled soul and JohnLocke
#3
SusanSharandon said:
However, not sure if the flow of income would or would not get reported later or if you can trust the agents to be honest in giving you the rent money (what if they rent it out without you knowing? hard to know without actually being there).
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That's a very good question that should be directed to the Hotel owner, if he can give you any good answer to it, you may have found an good investment.
 
Reactions: SusanSharandon and troubled soul
#6
Batumi - if you want to burn your money, then this is the place to invest.
Even before the RU-UA conflict it was not wise to invest there because prices were inflated. Now they are highly inflated, enjoying a short term boon.

Read this -> Tbilisi vs. Batumi – Which is Best for Buying Real Estate? | Tbilisi Property
Even though a bit outdated it gives enough hints that you better stay aways from it.

Georgia as an investment destination: Wrong timing. Prices are too high right now and the legal system is shaky at best.
 
Reactions: GeneralGogol and troubled soul
#7
It doesn't look like a scam to me. The founder looks like Christian Koenigsegg lol. With countries like Georgia those who move the fastest get the big reward but at this point in time with everything going on related to Russia I think it's too late. For 40k you can buy a property in another country that's not in a cold place like Georgia is.
 
Reactions: troubled soul
#8
azb1 said:
I find some good deal online
ruebushgroup.com

They give you hassle free return on your Hotel room investment. And they also accepting crypto as Payment method.
My question is "Is it worth it ??"

Or just another online scam/???
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I met them through a side-ad (I mean not specifically) of a hotel development project on Dubizzle's website. Can't say or use the oword scam, but I don't think it's as rosy as it's painted from their side.

NVO
 
Reactions: troubled soul
#10
These kind of offers are popping up very often in east europe in the last years.
Easy money for the developer.First he overcharges for the real estate unit and after that he gets a monthly administration fee.
You can say all of them offer more than they deliver thats also why they have also in most cases only a 2 year guarantee for a yield.
Here many hotelrooms have been sold which are now being administrated by mariott for example.
Rooms are empty and i highly doubt they are near the % yield they advertised at the beginning
 
#11
SusanSharandon said:
I wonder how the war is impacting the real estate market in Georgia. Are Ukranians going over to Georgia to invest/live?
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Ukrainians not so much. They prefer to look West. There are.much better opportunities for them in the European Union than in the former Soviet Republics.
However, with mobilisation in September plenty of clueless young Russians entered.Georgia. Of course, they will not stay because they cannot generate any income in Georgia -> How to buy income producing Russian asset using crypto ? .
SusanSharandon said:
Any chance Georgia will rethink joining CRS reporting now that Russia is flexing its strength?
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Why? It is up to each participating country with whom it exchanges data. With Russia nobody will exchange data because Russia will not exchange any data with the other participating countries.
 
#12
SusanSharandon said:
Any chance Georgia will rethink joining CRS reporting now that Russia is flexing its strength?
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I would be very surprised. Georgia is heading towards alignment with EU on KYC/AML/reporting/etc.

That can have benefits in the short term such as ease of transactions (e.g. joining SEPA), but also negatives as Brussels tries to undo the remaining advantages of doing business in Georgia.
 
#13
In the worst case- scam, in the good case you will not make much money.

I don't know a single person that bought real estate in "resort towns" and didn't lose money on them.
It appeals to simpletons that enjoy their vacation and think "oh why won't I own a real estate here instead of paying for hotel"
Also vacation resorts are usually DEAD out of season so you will make much less money in the winter (could also be zero).

Georgia is right on the border of Russia and if Putin wakes up without a boner in the morning he can decide to just "annex" it too because there are "lots of Russian speakers there" (true fact)
Georgian Lari is very weak and devalued a lot, remember you have this currency risk which is huge.

And the cherry on top is the fact that they accept Crypto, that just makes them even more shady.

Overall unless you know the property, speak Georgian or have a local that can inspect the property and make sure that it is rented\non-rented and knows the building location etc- probably not a good investment. The good investments are bought by locals and whatever trash is left is being promoted to dumb foreigners that think that "it's cheap" because it's just 2000e/m2 and not 9000e/m2 like at home
 
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