Ecuador - Real Estate Bargains

In Ecuador, real estate prices move up and down a bit. Not too long ago, you could get a house with several beachfront acres on the Pacific Ocean for under $20,000. Alas, those days are gone. In 2001 Ecuador adopted the U.S. Dollar as their only currency, and prices have been up and down since then, but never again that low.

They are still low, though, depending on what you are looking for. Actually, to be more precise, they are low if you are looking for residential real estate. In fact, it seems that the only way landlords make money in Ecuador is by selling their property.

When my wife and I traveled to Riobamba a couple years ago, we loved the changes we saw. This Andes Mountains city of 80,000 is alive with new businesses and new developments. Condos were going up in and around town, some really nice two-bedroom ones for as little as $26,000. Among the properties that we looked at were some rental properties.

One was a three unit building that was for sale for $102,000. That may sound cheap, but only until you hear what the units rented for: $80 per month each. Yes, you read that correctly, and if you are quick with your math, you realize that even with full occupancy and no expenses that represents a return of about 2.8% on the purchase price.

Prices have come down again since that time, as the people of Ecuador get used to the relative stability of the U.S. Dollar. Previously, having your money in anything other than currency - even real estate with lousy returns - made sense. But the numbers for income property still don't work in most of the country. This is why you see developments selling condos and homes to occupant-owners, but far fewer that are meant to be rented out. For now, avoid investing for income in Ecuadorian real estate (except possibly in high-end apartments).

Ecuador Real Estate - Residential

This is an area where it get's more exciting. As mentioned, the prices are not as low as six years ago, but there are still some great deals to be had. For example, we recently bought a small lot in a walled neighborhood with a guard at the gate. The price? $3,000. The property is a few hundred feet from the beach, on the Pacific Ocean.

For another $8,000 or so, my wife's grandmother has just finished building a home there (this is being written in August of 2007). The shared dues to keep the guards paid run about $10 per month, and utilities are similarly low. Granted, this is a small lot, and we have a small, simple two-bedroom home, but you can see that the dollar goes farther in Ecuador.

Outside of the Guayaquil, Ecuador's largest city, new subdivisions are popping up like they did in the fifties and sixties here in the U.S. Nice homes sell for as low as $30,000. Some of them have small monthly association dues to pay for community swimming pools.

Of course, there are always differences in culture that show up in real estate. As in most of Latin America, and unlike here in the United States, it is common that the wealthy live low and the poor live in the hills. So if you want a great view, and can find a neighborhood that is improving in the hills, the time may be right for getting great deals here.

If you want to live with others from the U.S. and Canada, there are areas where this is possible, but you will always pay more. You may want to learn Spanish, and get a better deal on real estate in Ecuador by buying where Ecuadorians buy their homes. In either case, use the services of an attorney to be sure you understand the laws and what you are getting.

Article Source: http://www.mycontentbuilder.com

Copyright Steve Gillman. To see a photo of the house we bought for $17,500 (in the U.S.), and to get a free ebook on how to buy Cheap Houses, visit: www.HousesUnderFiftyThousand.com

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