Ten Reasons Why Ecuador Is Our Best Beachfront Buy For 2010
By Michael Manville / Nov 09 • Categorized as International Real Estate •
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Beachfront condos $50/sq. ft. and low property taxes
1. It’s Cheap! We are talking dirt cheap. We are talking about large beachfront lots for $30,000, a 250 acre beachfront farm for $200,000…. a slice of ocean view property for $5,000, and a beachfront condo for $45,000.
2. No Debt Fueled Speculation. Ecuador did not participate in the real estate speculation boom that occurred throughout most of the world. Banks were not dishing out easy credit loans and pre-construction speculation was very limited. While real estate prices in many well known destinations are currently declining, property in Ecuador still represents exceptional value when compared with almost any other tropical coastline in the world.
3. U.S. Dollar Currency. Why is this a benefit? Given the recent decline of the U.S. Dollar against most other world currencies, beach property in Ecuador has become even cheaper than ever in global terms. Another benefit is that if you ever sell your property, you will be receiving dollars, not pesos or some useless currency. And even if the U.S. dollar tanks… at least you will have a piece of nice tropical real estate to escape to!
4. Accessibility. You don’t need a helicopter to get here. Ecuador is reached by taking a direct four hour flight from Miami or a 90 minute flight from Panama City, Panama. Ecuador is expanding an existing coastal highway that interconnects the rapidly growing economies of Colombia and Peru. Local airlines service three domestic airports along the coastline of Ecuador, and there is an international airport at Guayaquil which is only one hour from the nearest resort beaches.
5. Natural Beauty. These are truly some of the most stunning beaches in the world. The photos speak for themselves. The climate and vegetation varies from the south, which is drier and more arid relative to the North which is more lush.
6. Development Has Begun. For better or for worse, developers have already begun to sniff opportunity and the early signs of a boom could not get any more obvious. The large resort chain “Decameron” is building the first world class beach resort in Ecuador and additional international investors are flooding in. Ecuador already has a significant tourist industry which promotes world class destinations like the Galapagos Islands, the Amazon Rainforest, the Otavalo Artisan market and the UNESCO World Heritage site in the city of Cuenca. Tourism is established and it is growing fast, but Ecuador’s mainland beaches are still virgin. The government has made tourism a priority going forward and big time developers are already taking notice.
A million dollar view for $40,000
7. Good People. Have you ever been to a beach where people are trying to rip you off, sell you stuff you don’t want, or just annoy the heck out of you? Not so in Ecuador. The people here are helpful, friendly and when we left our cell phone in our hotel room by accident, the hotel staff recovered it and even shipped it our office. At the end of the day, it’s the people that make the place, and the people who make the experience a good one. We’ve met great people here, and you will too.
8. Natural Resource Based Economy. Oil is the biggest contributor to Ecuador’s economy. The advantage of investing in an economy based in oil is that the nation as a stable supply of revenue, with more money to invest in infrastructure, and to develop the other industries it deems a priority such as tourism. While controversy exists about the extraction of oil from environmentally sensitive areas, the government has been working hard to prevent unnecessary pollution from oil extraction. Would you rather be invested in an oil country, or a country based on debt, leveraged finance, and lots of freshly printed money such as the U.S.? The results of oil windfalls are apparent in Ecuador where several highways are being expanded (coastal and highland), new airports are under construction (Quito), new bridges are being built (Bahia), and a mega port is being planned to increase international trade (Manta).
9. China Has Taken Interest In Ecuador. A lot of Americans are afraid to invest anywhere under China’s influence. The rest of us realize that China is the new emerging economic giant and you either jump on board or get left in the dust. Anyone who doesn’t respect and follow China’s moves is putting themselves at a serious disadvantage heading into the 21st century. China is interested in securing natural resources from Ecuador and Ecuador is the closest point to China from the continent of South America. In today’s investment world, you want to be on the front end of whatever China is doing.
10. Tropical Location. Think of real estate prices in Florida, Mexico, the Caribbean or Hawaii… they all started out as backwater, hard to reach places where nobody went. Then, over time, they became “discovered” and real estate values went through the roof. More recently, this phenomena has happened in other tropical places like Nicaragua and Panama where only 10 years ago, you could buy beachfront for $500 per acre. Now it is Ecuador with beachfront land at $500/acre (not a typo – that’s five hundred dollars an acre).
Important Notes About Ecuador
- You can get your permanent residency in Ecuador with a real estate investment of only $25,000. Pensioners can get their residency visa with an $800 per month pension or $900 monthly per couple.
- With regard to political stability, Ecuador gets a bad rap from the mainstream press because of Ecuador’s de facto alliance with Hugo Chavez of Venezuela but the reality is Ecuador is anything but communist. Small private businesses are the mainstay of the Ecuadorian populous. Ecuador treats foreign visitors like gold and the locals are always eager to chat with foreigners of all kinds. Ecuador does not have a history of civil war and has remained peaceful even despite some turbulent economic and political moments in the past.
- Property rights are guaranteed in the constitution and apply equally to foreigners and Ecuadorians alike. Even during multiple sets of new presidents being elected and then thrown out, expropriate rarely occurred in Ecuador. Ecuador’s current president, Rafael Correa, has just been elected for a second five-year term which demonstrates a degree of political stability Ecuador has not seen for decades.
- Ecuador is the first nation on Earth to endow Mother Nature with constitutional rights. While the media and multinational interests have complained about this type of “left wing” policy, the inhabitants of Ecuador care about their environment and are aware of the inherent wealth it brings to their citizens. “Let the oil companies whine and complain and let the citizens establish nature’s rights”, say the Ecuadorian people and their policy makers. This is the type of social awareness is a pleasure to live and breathe.
- Ecuador received over 1 Million tourists in 2008 and remains one of the leading countries in South America for tourism. Why property prices are still so low is a mystery, but we believe the main reason for low and stable property prices is the lack of greedy banks force feeding people into cheap loans as has happened through much of the developed world. Most Ecuadorian property is purchased with cash which gives property here real value – value that is not tied to ever lower interest rates. Ecuadorians themselves buy and hold property as a form of savings account, rather than place money in a bank which is perceived as a riskier place to hold savings.
- Ecuador is one of few countries on earth with access to the Amazon Rainforest, Andean mountain peaks exceeding 10,000 feet, AND tropical sandy beaches with warm water year round (not to mention the Galapagos Islands!). The biodiversity in Ecuador is simply amazing and the result is a very exciting and appealing country to live and invest.
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Michael Manville is the author of
- Ecuador 101 – E-Book Guide To Living and Investing in Ecuador
- The Top Five Places To Retire Worldwide
- The Top Ten Retirement Visa Programs Worldwide
- Panama 101 – E-Book Guide To Living and Investing in Panama
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ARE YOU ABLE TO HELP ME FIND FARMERS TO START A NEW FRESH SWEET CORN PRODUCE BUSINESS IN ECUADOR? HOW CAN I CONTACT FARMERS DIRECTLY OR HOW CAN I CONTACT COOPERATIVES OF FARMERS? THANK YOU. RICHARD ANDRESKI, PRESIDENT; ROSEHAVEN ASSOCIATES, INC.; POB 1344; MILLERSVILLE, MARYLAND 21108. 001-410-551-5253. THANK YOU.
Richard, I am an agricultural economist at Oklahoma State University that has over 30 years experience in internaitonal devlepment in the agriculutral sector begining as a Peace Corps volunteer in Kenya. There are lots of ways of going about the task of starting an Ag business overseas. I would be happy to talk with you and help you identify farmers. Please give me a call at 405-612-3007 or email me at michael.dicks@okstate.edu
I am an American who retired to Panama and after 4 years bought property in Ecuador. There is another side to this picture. There is no mention that there is now a 1% (soon to double to 2%) tax by the government on any money that is taken out of the country…meaning, if you sell this and want to send the money to the US or elsewhere, it will cost dearly. Also, the government posts a huge capital gains tax, not based on the increase in the price, but rather on any roads or infrastructure they build…and not just during your ownership, but before. For example, I sold a condo for exactly what I paid for it, and was charged a $5,000 capital gains tax for “roads and other improvements”….there were NO roads or other improvements anywhere in or around my condo during my ownership. Also, the beaches of Ecuador are NOT like the Caribbean or Florida or Mexico. … they are brown sand and brown water that is cold (Pacific water is cold), and the beaches are dirty…littered. I have lived all my life in Florida, California and Hawaii and I know my beaches!! Also, they are VERY noisy….locals use the beaches for loud parties that go on all night….living on one is not relaxing. And, at this time, here are rolling blackouts all over Ecuador which are expected to continue for months to come…..the hydroelectric capacities in the country are very limited and cannot handle current needs, let alone growth that will come with advertisements about Ecuador as a paradise. Finally, the polltical situation is not as comforting as one might think…the Constitution is easily changed by the president in office…..and the current president just wrote a whole new one…that doesn’t favor those of comfortable living circumstances. He is heading toward President for Life, following in the footsteps of his friends Castro and Chavez. Also, there has been talk of him abandoning the US dollar in favor of a new South American standard currency (like the Euro) called the Sucre….when this happens, serious changes will occur in the economy. Even though he is European and US educated, he is strictly a socialist, and not friendly to the US. These are the facts as told by a resident of Ecuador and should be welcomed here. It will be interesting to see if this passes moderation.
I live in Florida and can tell you that developers pay the local government entities impact taxes that pay for roads, sewers etc providing services to their “subdivisions” etc. Thus, I see nothing irregular about the government in Ecuador charging similar fees. Secondly, I see no need for you to start agitating against a freely elected President (who, by the way has a PhD in economics from the U. of Illinois) who has brought stability and hope to the majority of people in Ecuador. You seem to be repeating the exaggerated fears of the upper crust there, who accuse Mr. Correa of being a marxist, etc simply because he has put a stop to government by the rich for the rich. The new Constitution was written by an assembly, the members of which were freely elected. Mr. Correa did not write it. Furthermore, the “socialism for the 21st Century” which he openly spouses, is, in fact, not too dissimilar in objectives from policies of most of the governments in Europe.( I suspect you also accuse President Obama of being a closet socialist or marxist because of his efforts to help out those who are struggling in the current economic climate.) As far as abandoning the US Dollar at some future point for a SouthAmerica wide currency, that is not imminent as a great deal of work must take place before such an integration of economies is feasible. You are correct in stating that currently there are some rolling “brownouts” being experienced due to low water levels in the river that provides the principal hydroelectric plant. New plants are under construction and in the meantime, arrangements have been made to purchase electricity from Peru and Colombia. The one problem that you failed to mention is that there has been a significant rise in property crime in Ecuador, particularly in Guayaquil. The government has responded by putting Army troops into affected areas to assist the local authorities. This increased incidence is linked, as it is in most developing countries, to the worldwide economic recession caused by the lack of proper bank regulation in the United States under the Bush administration.
thanks Penny, your info is very needed & should be well heeded. A lot of publications & now pushing this country but the fact of the beaches & government direction is enough to convince me to stay away.
It never ceases to amaze me at the take of the world on Ecuador. Penny must have been in areas of the beach that I missed. The water here is not near as cold as the water off the coast of Southern California (where I grew up). It is pleasant and the beaches are exactly like Southern California beaches with “that awful” brown sand….oh how disgusting! Give me a break…so if someone offered you a home on Malibu Beach you would turn it down because of that “nasty” brown sand? And what would your taxes be on that home?? I paid $50k for a home on the beach in Olon, Ecuador and my taxes are less than $100 a year. If my home was on the beach in Malibu it would have cost me a million and I wouldn’t be able to afford to pay the taxes.
Ecuador is not for everyone, but don’t be frightened away from the exploring of it because of ONE person’s dislike or poor experience. I knew a little girl that would never go back to Disneyland because Mickey scared her. Luckily for Walt (rest his soul) that little girl is a rare exception…just like Penny.
Penny I do sincerely hope you have found another paradise that is to your liking…I mean that truly.
Oh, and Dr. Pozo….so I take it that robberies, rapes, murders, stabbings, street muggings and the like have stopped in Chicago, New York City, Los Angeles, Atlanta, Miami and even Oxnard. I don’t hear about throngs of people exiting those cities because of the crime that is much more serious in nature than what happens in Ecuador.
Come on folks do some thinking and put all that happens anywhere in the world into the mix and you can find something wrong wth anyplace. You know…maybe you are right though….don’t come to Ecuador and tell your friends the same….the problem is every country seems to want to mimic the USA….so where do these problems really come from….???? Think People!!!!
I am interested in finding out how us Americans can 1) purchase propery in Ecuador, 2) must we first be some sort of resident or have some status with Government ?, and 3) Need someone attending to property year-round due to any type of “squatter’s” law, if this exists here?
This and the other pertaining questions that follow what I am inquiring about are what I am after and in search of. if anyone from the USA has already went through this process, please send me an email to themick4u at yahoo dot com (replace the word ‘at’ and ‘dot’ with the ‘@’ and ‘.’ symbols, please, to avoid spammers).
I would hate overpaying some high-priced local attorney and fees that are unecessary to purchase a nice retirement plot of beach-front land there… PS: How does, if any, Insurane work as well?
Mr. Manville I have completed some follow up research on Ecuador. Specifically I refer your readers to the US State’s Department report on that country. This is a wide discrepancy between what you portray and what our [somewhat more disinterested] foreign service describes. Specifically [and there is much more] the extremely high rate of crime [theft, rape, home invasions, etc.] that occurs through out the country: on the beaches, in taxi cabs, on popular tourist hikes. The fact that armed robberies and rapes have occurred even when there are groups of 7 or 8 people is of concern. So is the armed robbery of many of the “finest” restaurants in many of the larger cities along with the robbery of the patrons. Your portrayal of the government as a stable and non communistic one is somewhat optimistic and may not correspond to the historical and current reality of the country. In addition to Ms. Ripple’s comments, I would urgently suggest that your readers consult other reliable sources to obtain, a different and perhaps more realistic appraisal of the country with an accurate description of it attractions and the significant other factors that may negatively impact those moving to the country. Sincerely and With Every Best Wish
Dr. Alfred Pozos, Ph.D.
This article is false when it comes to galking about the beaches. “Truely some of the most stunning beaches in the world” is a complete lie! Try and find photos of the beaches on the internet it is almost imposible. Salinas has a nice one but it is small and surrounded by high-rises and on weekends and holidays it is overrun by loud partying Ecuadorians. I was astonished when I went to Salinas it is on a almost barren pennisula only the tiny bay is appealing. There are two good beaches for surfing in Ecuador and the other persons comment about the water being brown. I am sure the whole motivation for writting this article is to sell real estate or advertisement of the same!