At Legal Sandbox Georgia, we treat your property strictly as a financial instrument, separating emotional value from economic performance. Our Property Profitability Analysis is a specialized service for investors designed to determine the most lucrative utilization strategy for your asset. We begin by constructing a comparative income model that rigorously evaluates the trade-offs between short-term hospitality renting (Airbnb/Booking) and long-term residential leasing. This analysis goes beyond simple revenue projection; we factor in the operational complexity of short-term turnovers, the specific 18% VAT liability threshold (100,000 GEL turnover), and the varying income tax regimes (5% for residential lease vs. 20% standard rate), ensuring your strategy is not only profitable but tax-compliant.
The core technical deliverable of this service is a comprehensive Excel Cashflow Model. This is not a static document but a dynamic financial forecast covering Yield percentages, Return on Investment (ROI), and precise Payback Periods. We structure all associated costs with forensic accuracy, categorizing expenses into Capital Expenditure (Renovation/CAPEX) and Operating Expenditure (Maintenance/OPEX), while also accounting for municipal property taxes and utility fluctuations. This granularity allows you to see the "Net" reality of your investment, stripping away the "Gross" illusions often presented in marketing materials.
To ensure prudent risk management, our financial modeling presents three distinct scenarios: Worst-case, Realistic, and Optimistic. We stress-test your asset against market volatility, occupancy drops, and currency exchange risks (GEL/USD). Based on these projections, we formulate a strategic roadmap for the next 6, 12, and 24 months. This timeline provides clear milestones for performance review, guiding decisions on whether to refinance, hold, or divest the asset based on the realized Internal Rate of Return (IRR). This data-driven approach transforms passive ownership into active, high-yield asset management.
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