Saturday, February 21, 2009

Ecuador Real Estate is Inexpensive


start WP import blockBY GARY SCOTT

Ecuador real estate potential is enhanced by increased inflation and this is why Ecuador real estate investing makes sense now. Messages at this site have been recommending investments in Smalltown USA and in countries abroad such as Ecuador.

Even during its recent high levels US property is generally very cheap compared to real estate in many cities abroad. This has created several curious situations.

Attractive parts of the US are being priced out of the common man’s budget because of the global economy. I have seen this happen in Naples, Florida where we lived. Buying pressure has been created almost entirely by outsiders and very much in part by buying pressure from wealthy overseas buyers.

When the US dollar falls, this reduces the international value of US real estate, and overseas buyers swoop in. This will force middle class Americans to move to less expensive areas such as Bucksnort, Tennessee. See garyscott.com/international_investments/international_investments_99.html

60 million baby boomers will begin to retire in just a few years. Many of their pensions and social security will be severely squeezed by inflation, leaving these people with one of five options.

#1: Keep working
#2: Move to less expensive areas within the US
#3: Export their retirement
#4: Live in near poverty
#5: Die

This is why I also believe in Ecuador. Imagine this. 60 million boomers will retire over the next 20 years. We boomers are the most spoiled group of consumers as a demographic class that has ever existed on earth. We were promised the world. We were given the world. Now the magic is about to disappear.

Assume that 10% of these will decide to move to less expensive countries. That’s 6 million people. Where is the most likely place to go? Eastern Europe offers great potential but are long distances from the US.

Canada is out…too expensive and too cold. Most people will head south.

Mexico stands to be #1, but prices there are rising quickly and there is a lot of anti-gringo sentiment. After all there have been numerous Mexican-American wars. The building of a fence across the border will not help either. Yet it’s still probably the place that will benefit the most due to location.

Cuba. By then will be ripe and good as well. A great place to buy when you can assuming no negative political circumstances. The low end Caribbean is also good except for those darn hurricanes that will put lots of people off…plus many water and transportation problems and the fact that few of the islands have a real infrastructure.

Panama is good…lots of English spoken, many yanks already there, but weather is lousy if you want to be in town (hot and humid) and prices are no longer low. Ditto for Costa Rica. Central America lacks infrastructure though there are some nice gringo settlements though they are expensive. Colombia is the first nation with a progressive economy and full infrastructure after Panama and Mexico. This is a wonderful place but security will stop most from going there. If the security/drug/crime issues are resolved and image cleans up…go buy in Colombia. This will be a great opportunity.

However for now Ecuador, 3 hours and 45 minutes from the US will benefit as the first nation with a full infrastructure and really low cost of living. Argentina, especially Buenos Aries should do well also. It’s further away but BA has a very European feel.

If Ecuador gets just 10% of these 6 million Americans that leave the US, imagine what this means to this nation of 11 million. First this is more than a 5% increase in population. However look at what it means in dollars!

According to the CIA World Fact Book, Ecuador has a Gross Domestic Income of $4,300 per annum per person. That makes a total GDP of $47,300,000,000.

Imagine what happens if the 600,000 gringos have an average income of $18,000 a year per person. That adds $10,800,000,000. This is an annual income that almost equals 20% of the entire national GDP! This is one reason why Merri and I include Latin equities in our investment portfolio and are buying more and more real estate in Ecuador.

Every cloud has a silver lining and two clouds casting shade on the greenback’s value are liberal money supply and political interference to support presidential elections. The silver lining comes in the form of profits made in places where fed up Americans and Canadians decide to go when they leave home.

This is why we bought condos in Ecuador. You can see a couple more shots here.

View from front yard

Communal Gardens of condo

Until next message, may all your linings be of silver and gold!

Gary

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International Business and Investing Course, in North Carolina, http://www.garyascott.com/nccourse

Super Thinking + Spanish http://www.garyascott.com/catalog/sp/

International Business Made EZ Course in Ecuador.http://www.garyascott.com/catalog/IBEZec/

Andes Extension & Real Estate Tour. http://www.garyascott.com/catalog/andeanext/ Andean Shamanic Tour. http://www.garyascott.com/catalog/mingo/ Attend three Ecuador tours and save $398. See http://www.garyascott.com/catalog/save5/

Writers & Self Publishing Coursehttp://www.garyascott.com/catalog/pc/

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ECUADOR REAL ESTATE

Cotacachi Real Estate For Sale

start WP import blockBY GARY SCOTT

Cotacachi and Ecuador real estate prices are on becoming higher. Construction material, cement, steel and wood have been skyrocketing in cost. Plus new duties imposed on imports such as pipe are raising material costs.

Our recent Cotacachi real estate tour looked at a number of Prima Vera II - to IV condos for sale from $46,500 to $54,500. Here is one of the four new Prima Vera blocks. This is Prima Vera III.

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Bulding costs have forced the developer to raise prices on each building. The units are identical but each block has a higher price.

Here are the prices now for these Prima Vera units.

Prima Vera II

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Prima Vera IV & V

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Prima Vera IV & V

There are 13 units left here at the old prices. Learn here how to view the pricing and receive a 2% discount on the purchase as an Ecuador Living subscriber.

While viewing these condos we talked to American owner Bill Daily about the cost of living in Cotacachi. He and his wife live in a Prima Vera III first floor unit.

Here is Bill and his wife Jo.

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This is their condo…with a comfortable view balcony

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Two bedrooms.

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One bedroom is used as an office…

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plus a full kitchen.

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Here is their living room.

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We asked Bill about utility costs and he told us that property taxes were $38…a year.

Propane is $2.50 for 20 gallon bottle for cooking, heating and hot water. They use about $5…a month.

Water is $6 a month, electricity $20 a month….broadband $49…condo fees $100…so in all there basics are about $185 a month.

Until next message, good living wherever you are.

Gary

Ecuador Cost of Living. The $700 solution.

start WP import blockBY GARY SCOTT

Ecuador’s cost of living is low.

This is a great day to look at Ecuador coastal cost of living because our friends Larry & Shirley Humphrey just moved into their new condo at Vistazul! They are the first residents there.

Here they are at Palmazul, their club house, (133 steps from their condo) using the broadband. Eventually they’ll have broadband in the condos but the units are not yet completed (completion of the last units is scheduled for November 2009).

Ecuador-cost-of-living

Since Merri and I are only part timers in Ecuador, I continually ask readers who have moved full time about Ecuador’s cost of living.

Recently our message entitled Cotacachi Cost of Living showed how Bill & Joe Daily live in Cotacachi on about $700 a month.

Another message Cotacachi House and Condo Rentals shows how Lee and Peggy Carper live for even less.

So I was not surprised when I spoke with Larry and Shirley that they told me it was costing them about $700 a month to live (without rent). Their comment was, “we receive over $2,000 from our Canadian pension, live on $700 and save the rest.”

We could call $700… the Ecuador cost of living solution!

Yet low cost living is not even near the biggest benefit of living in Ecuador quoted to me by residents here. A more relaxed lifestyle is often number one.

I could not agree more. Here I am with Ma in the Pamazul front yard… working hard.

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I am thinking.

Other times I take my lap top and enjoy the benefits of a broadband global business by working from my balcony… with this view… and the sea breeze… the warn sun and sound of the waves.

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Usually I quit working though for the sunset. Here is one sunset shot I took from one of our Vistazul condos.

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These condos are now available for rent.

Good health comes in as a reason to live in Ecuador as well. Everyone walks more… eats fresher food. A great article on Ecuador beach restaurants shows why.

Larry and Shirley are from Calgary and had a successful jewelry business there but the pace of life was ruining their health. Since arriving at Vistaazul, Shirley has seen her weight drop 20 pounds and is completely off all the medications she needed when she lived up north. Both tell me they feel so much better… so much more relaxed… filled with energy again.

Merri and I watch them enjoy playing in this surf every day.

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Some times alone.

Ecuador-cost-of-living Some times with the local kids.

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Some times with just the pelicans and sometimes…

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on this totally empty beach.

Style in Ecuador construction also offers some wonderful little things that one would never get in a condo up north… like this window trim.

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Each unit has its own special wood carving in the window.

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Gardening is another. Here is one block of the Vistazul condos. They look a bit bleak now but not for long.

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Here are some of the flowers you see around Vistazul.

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So many shapes…

ecuador-cost-of-living sizes…

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colors…

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smells.

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Plus, I just received this note from Kjetil Haugan.

Gary, thanks..I just got back from Galapagos where we had a small party launching our newest Galapagos cruise ship, the M/C Nina..we have our first cruise tomorrow.

Shirley and Larry moved into their condo yesterday!

We hired a Botanical Phd to design and plant the whole project..he started today.

We have 5 units of the seven nits you recently wrote about left but I will keep at least 2 of them for some clients that reserved up the hill and have not decided yet what to do. This means we have only 3 units left to sell..and a couple of people are almost ready to make deposits..I do expect some fallout from the people who made deposits but anyway it looks very good. I have also negotiated a couple more cash sales from people who wanted to buy. Regards, Kjetil

This means that there may only be one condo unit left with the free Galapagos trip offer. Get details from Kjetil at kjetil@haugancruises.com

Until next message may your cost of living be low , relaxed and healthy as well.

Gary