What I understood that I can apply for GV using Promissory Contract (New Development project) and then renew using same at the end of 2nd year until year 4. On 5th year you must submit the deed.
The development project ETA to finish in three years but if looking at the Global situation , it will be delay for sure.
My question, if during the year 5 , I am not able to submit the deed (Project delayed) , what will happen to my GV application. Will be scrapped or I can renew once I have submitted the deed ?
I would definitely recommend checking with a lawyer, but my understanding has been that you must own the property to get a GV. A promissory contract is not owning the property; it’s a contract to purchase property, which can be backed out of. So without the deed, you would not get pre-approval for the GV at all.
To get around these issues, for example, if it’s a new construction, can’t they sell you the property/land and then sign a contract for works to build the property? That is my understanding for how the Mercan properties work, but I did not invest with them and do not know all of the details.
As you yourself point out, buying a property which is under construction adds uncertainty and anxiety of the developer completing the project, over which you (and sometimes even the developer, as with force majeure circumstances like Covid) have no control. This is on top of the baseline uncertainty and anxiety caused by SEF.
Personally I wouldn’t go for it. Way I see it, the primary purpose of the investment is the residence permit, not financial ROI. Usually new development properties offer attractive returns, but they jeopardise the primary objective and there is a small chance of the entire investment getting stuck if the project stalls. Better buy something which already exists and transfers immediately to your name, even at lower returns. At least you can sell it if things go sour.
You understand correctly. You can indeed proceed with a GV application with a Promissory Agreement. Contrary to some beliefs, you do not need a Title Deed to submit and be approved for a GV.
You will obviously have to execute the title deed later on, this should be reflected already in the Promissory Agreement. In the event of delays, this isn’t something you are at fault for and, in theory, shouldn’t affect your GV.
Consider also that depending on the project, it is possible to execute the title deed prior to the finishing of construction, which takes the guessing out of the way as far as the GV is concerned.
I highly recommend that you discuss this with a lawyer who has a track record of handling GV for a rehabilitation project.