Ecuador Economics & Real Estate
Dec 21st, 2008 by Gary
A reader asked about in reaction to yesterday’s message about the sucre asking:
Hi Gary. As someone who has a substantial investment in the Vistazul project in San Clemente, are you not concerned how this will affect real estate prices? Whether they drop the dollar now or in 3 years, or perhaps never, do you not think that the instability will cause real estate prices to fall?
I’m asking because we are prepared to purchase one of the Vistazul units and are concerned that this is a really bad time to invest.
Having said that, we have had limited exposure to the Ecuador real estate market and perhaps San Clemente is a good investment at its current price, regardless of what’s going on with the currency or falling oil prices.
Your insight would be greatly appreciated. At your convenience of course, I understand that you are a very busy person! Thanks and Happy Holidays to you.
Here was my immediate reply:
When the sucre crashed in 1999 Ecuador real estate prices simply rose as the sucre fell. The instability created some great bargains because those who were cash starved had to sell at lower prices. Those who already owed real estate without debt or a cash crunch benefited most. See more on how the people reacted to the last Ecuador crash. See here
Ecuadorian investors rushed out of the sucre into property.
Now the potential is even better. Ecuador real estate is real money to Ecuadorians. They have never trusted Ecuadorian money…banks or government bonds.
Ecuador real estate is where they will park their cash when the economic going gets rough. In Ecuador property is real wealth.
Now we have an even better situation. We have a huge growing expat market buying Ecuador real estate as well. This buying force was just beginning in 1999. It is in a much stronger now as the Canadian and US economies and ways of life deteriorate. This makes Ecuador real estate more of an international commodity that is less vulnerable to local economic declines. See why here
I believe this enough that I bought an extra unit at Vistazul when I heard the news that Correa might default on the bonds so I am the largest condo owner there…six condos and an apartment in the hotel itself…plus two of my daughters each (on my advice) bought a condo.
If I am correct, capital appreciation will be substantial. If I am wrong I’ll have to sit on the sunny beach all winter long, eating fresh seafood, served by really sweet people at $5.00 for a full meal and wonder why.
Gary
Join us at a course in Cotacachi or on Ecuador’s coast this winter.
Jan. 16-21 Ecuador Spanish Course
Jan. 22-23 Imbabura Real Estate Tour
See condos like this in Cotacachi for $46,500.
Jan. 24-27 Coastal Real Estate Tour
See Manta condos like this one. Delegates are inspecting the 1,000+ square foot patio.
The patio has this view.
Feb. 9-11 Beyond Logic-Shamanic Mingo
Feb. 13-15 International Business & Investing Made EZ
Feb. 16-17 Imbabura Real Estate Tour
Here is a long shot of Cotacachi.
March 8-9 Imbabura Real Estate Tour
March 10-15 Ecuador Export Expedition
March 16-19 Coastal Real Estate Tour
Attend any three Ecuador courses or tours in a calendar month…$1,199 for one. $1,799 for two
Here is our Ecuador tour schedule for the balance of 2009.
Date Course Couples Fee
May 21-26 Ecuador Spanish Course ($999)
May 27-28 Imbabura Real Estate Tour ($749)
June 12-15 Shamanic Mingo Tour ($999)
June 16-17 Imbabura Real Estate Tour ($749)
June 18-21 Coastal Real Estate Tour ($749)
July 2-7 Ecuador Import Export Expedition ($1,499)
July 8-9 Imbabura Real Estate Tour ($749)
July 10-13 Coastal Real Estate Tour ($749)
Sept. 17-22 Ecuador Spanish Course ($999)
Sept. 23-24 Imbabura Real Estate Tour ($749)
Sept. 25-28 Coastal Real Estate Tour ($749)
Oct. 21-26 Ecuador Import Export Expedition ($1,499)
Nov. 6-8 International Investing and Business Made EZ Ecuador ($999)
Nov. 9-10 Imbabura Real Estate Tour ($749)
Nov. 11-14 Coastal Real Estate Tour ($749)
All Cotacachi Tours and Courses are condcuted at our colonial inn, meson de las Flores were we enjoy Breakfast “al fresco”.
All Coastal tours are conducted on the beach from our coastal home at Hotel Palmazul.
You should normally plan to arrive in Quito two days before the course. We will pick you up at the airport, help you to your hotel in Quito and bring the group to Cotacachi by coach.
For coastal tours we travel as a group from Quito to Manta by air, then tour the coast for two and a half days returning to Quito on the evening of the third day.
Here I am with Merri and Ma at Palmazul’s beach.
Here I am hiking with Ma above Cotacachi.
Attend any two Ecuador courses or tours in a calendar month…$949 for one. $1,349 for two
Attend any three Ecuador courses or tours in a calendar month…$1,199 for one. $1,799 for two
Cotacachi Cathedral at night.
Shamanic ceremony on mingo tour.
Enjoying the surf at Palmazul.
Cotacachi plaza.
Palmazul beach.
Merri, me and Ma above Cotacachi
Sunset at Palmazul.
Attend any two Ecuador courses or tours in a calendar month…$949 for one. $1,349 for two
Attend any three Ecuador courses or tours in a calendar month…$1,199 for one. $1,799 for two
Better still join us all year in Ecuador! See our entire schedule of 26 courses, tours, mingos and expeditions we’ll conduct in 2009.
The course fee includes meeting at Quito airport (day before the course)…transportation (by group bus) to Cotacachi and back to Quito. Course fee does not include air are. accommodations, food or individual transportation.
