The prospectus leaves an awful lot unsaid.
It would appear that the ?developers? may not own the property. They may only have an option to purchase. If so, your deposit will be unsecured against real assets.
The last I heard was that Caja Canarias owned the communal areas and La Caixa owned the apartments. A company called Tanhausea SA was attempting to buy the complex and sell off individual apartments. It was also in discussions with the local council about obtaining a licence for touristic letting. That was 5 years ago and apparently nothing came of it.
Is the property still the subject of legal disputes between the banks and Ken Boot and between Boot and his predecessor Rodriguez ?
Is the deposit to be used to fund the refurbishment or is it to be held by a third party until your apartment is completed along with the communal areas ?
The refurbishment is to be completed in stages, so what would happen if the developer goes bust or runs out of funds before the project is completed and where would this leave the prospective buyers in terms of their apartments, their deposit and their liability for the communal areas ?
It sounds to me too much like buying off plan with all the associated risks.
There is also a great deal of uncertainty at the moment about the true value of property assets held by Spanish Banks which has led to the Spanish government pledging independent audits of bank balance sheets because there is a suspicion that property asset values are being grossly overstated by the banks. If this is found to be true there could be major fire sales by banks to unload these bad investments to improve their liquidity and this is bound to drive down property prices.
Maybe now is not the time to invest in Spanish property. If you have money to invest it may be safer to leave it in the bank......................but maybe not !