Ecuador

By Michael Manville

Copyright 2010 – All Rights Reserved

Benefits of Living and Investing in Ecuador

** Beachfront condos for $40,000, beachfront lots for $30,000

** Incredibly diverse landscape from 10,000 foot highland communities to white sand tropical beaches, Galapagos Islands, and even the Amazon rainforest

** Plentiful, locally grown and fresh food at ridiculously low prices

** People and culture who are very warm and friendly toward foreigners

** Business opportunities in import/export, tourism, health and wellness, and many other emerging industries

Author’s Summary

When I suggest Ecuador as a place for living and investing, most people give me the same blank stares I received when I suggested Panama for the same reasons back in 1999. For those of you with foresight and a sense of adventure, blank stares from mainstream audiences are excellent indicators. Blank stares usually indicate great opportunities for unique experiences, eccentric lifestyles, and rewarding investments.

Most people know very little about Ecuador, and what they do know is very often a combination of misconceptions and half-truths. Ecuador is often associated with political instability, economic volatility, poverty, and partnerships with Hugo Chavez, Venezuela’s socialist dictator.

My intention was to investigate for myself and my readers what Ecuador is really like as a place to visit, live, retire or invest. This report is designed to give a balanced overview of Ecuador based on my personal observations, discussions with locals, and interviews with professionals and expats living and working in Ecuador.

My initial impression of Ecuador is extremely positive and my visits have dispelled most of the negative myths associated with Ecuador as a nation. Many of the misconceptions about political instability and danger have worked to keep Ecuador’s cost of living and property prices very low. I’ve found the people to be extraordinarily friendly, and the existing tourist infrastructure under utilized despite a wealth of diverse attractions. Ecuador has not been overdeveloped or over-infiltrated with foreign interests which, believe it or not, is usually the true source of crime and drug problems (take Mexican and Costa Rican resort areas as examples).

In terms of safety, I would not hesitate to claim Ecuador to be a safer place than Mexico or Costa Rica, certainly in terms of criminal activity. Of course, many Ecuadorians are extremely poor by Western standards, but for the most part, poverty does not translate into high crime levels except in the heavily populated urban barrios of Guayaquil and Quito.

Planes, taxis, and buses run safely and efficiently in Ecuador. In fact, when flying between the highlands and the coast, travelers will be pleasantly surprised at the high level of organization and efficiency. There are rarely line-ups to check in, security is a breeze (no frisking or long line-ups), and nearly all of the primary destinations within Ecuador are reached in under an hour by plane and for under $80.

Ecuador and its people do not appear as impoverished as one might expect of a developing nation with a history of economic turbulence. On the contrary, Ecuador and the bulk of its citizens should be considered wealthy and prosperous. In my view, per capita GDP is not a measure of true wealth. A measure of true wealth is affordable access to healthy food and water that is locally produced, a sense of community spirit and respect for one’s neighbors, and a lack of unnecessary government regulation and taxes. By these measures, Ecuador stands out as one of the wealthiest nations on Earth.

With regard to political stability, Ecuador is in many ways more democratic than Western nations. Ecuadorian people are willing to get off their behinds and support grass roots movements to stem corruption, protect the environment, and ensure the voice of the people is heard. Political rallies are part of the culture and receive active participation from all ages from small children to grandparents. Communities genuinely care about what happens with the limited funds coming from government – a rather stark contrast to the indifference demonstrated by the majority of U.S. and Canadian populations.

Property rights are guaranteed in the constitution and apply equally to foreigners and Ecuadorians alike (see details below in the Real Estate section below). Ecuador’s current government has decided to play hardball with the large mining and oil companies by imposing rigid environmental standards and ensuring that a healthy share of the profits return to the Ecuadorian treasury in the form of taxes. Many analysts point out that Ecuador simply refuses to “sell out” by accepting the bribes or “contributions” that are normally sufficient to allow large multinationals to rape and pillage in the name of capitalism, leaving the locals with very few of the benefits their land ought to endow. Ecuador is the first nation on Earth to endow Mother Nature with constitutional rights.

Overview of Living and Investing in Ecuador

Ecuador can essentially be broken down into four primary geographical regions: the coast, the highlands, the Galapagos Islands, and the jungle (also known as the Oriente). The Ecuador 101 – E-Book focuses on exploring the coastal and highland territories as they are currently the most popular among international visitors seeking to live or invest.

There are dramatic cultural differences between the coast and the highlands that may strongly influence one’s decision to live or invest in either region. The coastal areas are generally much warmer and more humid than the highlands. As a result, the people in the highlands tend to be more industrious and more prosperous than those on the coast. Ecuador’s coast has yet to be developed for large scale tourism so the bulk of the population still survives on subsistence fishing and agriculture. The relatively less developed coastal areas generally suffer inferior road, water and electrical infrastructure relative to the highland areas. Benefits of living on the coast are access to empty tropical beaches, fresh seafood, and lively festivals.

Ecuador can also be divided into urban and rural environments. Ecuador’s larger cities operate efficiently, inexpensively, and generally offer enough of a cosmopolitan edge to make Ecuador as a whole a very attractive place to spend time. Ecuador’s largest cities (Quito and Guayaquil) tend not to be safe for walking around alone at night, although taxi transportation is widely available and affordable.

Most of the smaller towns and villages in Ecuador are very safe, even at night. Ecuador’s smaller towns and villages really shine due to their sheer natural beauty, the friendliness of the people, high levels of safety, and reasonably high and modern standard of living for a very low price. My personal favorites are Cotacachi and Vilcabamba in the highlands and Bahia de Caraquez and Canoa on the coast.

The Taxi Driver Effect

Taxi drivers are your author’s favorite window into local culture, efficiency, standard of living and overall well being. Much like the quality of a waiter reflects the quality of a restaurant, the quality of the taxi service in many ways reflects the quality of life in small towns and cities.

When taxi drivers are typically rude, drive run down vehicles, overcharge their passengers and drive like maniacs, it says a lot about the culture and economy of the place you are visiting.

On the other hand, when drivers are ultra-friendly, drive newer clean vehicles, and deliver an honest service, you can bet the townspeople are generally pleasant to deal with. The taxi driver typically represents a middle class occupation and often provides great insight into the well being of a community over a very short period of observation.

The taxi drivers throughout most of Ecuador are pleasant, prompt, polite and affordable. The only negative taxi experiences we have heard and seen occur in Guayaquil and Quito. In Guayaquil our taxi driver was worried about getting robbed and had been robbed the previous evening. In Quito one of our friends mistakenly left his backpack in a “friendly” taxi driver’s car, only to realize later that his camera had been stolen from the bag.

People

Ecuadorians are enormously friendly and warmhearted. They are eager to engage with foreigners and always willing to help. Although they are hungry to make money and improve their standard of living, their demeanor is generally one of humility, graciousness and curiosity. Show and flash are generally only apparent among the small proportion of uber-wealthy families who control politics and send their kids off to U.S. or European schools for a dose of Western education and materialism. Even the high-class folks are open and friendly and eager to tell of their recent trip abroad or the family connections they have living overseas.

Food

Alas, food is both a strength and a weakness in Ecuador, depending on how you cut it (pun intended). Overall the restaurant selection in Ecuador is relatively basic, although larger cities like Quito and Cuenca do offer a fairly cosmopolitan dining scene. However in the smaller towns and villages, attempts at Western cuisine and ethnic foods, though well-intentioned and safe, is typically substandard. Tender steak that is properly seasoned and grilled can be particularly hard to come by.

On the bright side, open air markets provide an impressively wide selection of fresh fruits, grains, meats, spices, herbs, cheeses, and veggies. Someone with cooking and restaurant experience would do well in Ecuador, as the ingredients for making delicious food abound. Most often, food in Ecuador is grown and harvested the old-fashioned way, and not processed, refined, reduced, hydrogenated, or assimilated like the bulk of U.S. groceries. Market prices are also ridiculously cheap for anything not imported from abroad.

Ecuador grows a lot of its own food and market food is often delivered daily from farmers in the surrounding countryside. Although the beef tends to be tough, chicken and fish are generally fresh and excellent. Not every town and village has its own open air food market but even small to medium-sized cities like Otavalo, Loja, and Bahia de Caraquez have great daily food markets.

Political Climate

Overall the economic climate seems optimistic and stable, with most Ecuadorians approving of President Rafael Correa’s policies. Correa has increased the nation’s tourism development budget and seems to be working in the right direction despite other criticisms about him cracking down on the big oil, mining, and telecommunication companies (as in raising fees/taxes, and imposing restrictions that would favor the consumer).

Many major infrastructure projects are underway in Ecuador including new highways, bridges, and airports. A new airport is under construction in Quito, a new bridge is being built to connect San Vicente to Bahia de Caraquez and the road from Manta to Bahia is being widened and re-paved. Ecuador is essentially an oil-based economy so as long as oil prices stay relatively high, Ecuador should benefit and be able to continue infrastructure improvements across the nation.

Top Pick For Coastal Living in Ecuador – Bahia de Caraquez

A better choice for lifestyle may be Bahia, which at least provides nice clean paved streets for walking, a couple of banks, a large open air market, and a marina/yacht club. Bahia sits on the tip of a narrow peninsula only a few blocks wide and is surrounded by a wide tributary which serves as an excellent port for docking and loading commercial ships and sailboats. There are very appealing ocean views surrounded by green rolling hills in every direction. The beaches are clean and pleasant for a swim and water sports – kayaking, sailing, kite surfing, wind surfing, paragliding – it’s all here.

Bahia does not feel like a fishing village like Crucita and San Clemente, but rather a resort city that has been abandoned. High rise condos everywhere but there are hardly any people around. During Ecuador’s shrimp boom in the early to mid-1990s, Bahia de Caraquez became the hub for production and transshipment of Ecuador’s shrimp supply. The resulting wealth poured into the small city’s coastline in the form of beachside condos, vacation homes, and a couple of hotels. When the shrimp industry in Ecuador collapsed shrimp farming suddenly became a losing proposition and the resort city of Bahia has not fully recovered.

Today, Bahia looks and feels like a resort town on the beach, but many of the condos remain vacant. Real estate prices are depressed, with a wide selection of properties for sale. Many properties for sale are not even advertised due to the prevailing lack of buyers. As recent as 2009, two bedroom ocean view condos were offered for as low as $60,000. A large penthouse with magnificent view for $150,000 and just steps from a wide sandy beach. Condos rent as little as $300 per month for a two bedroom with ocean view.

The town infrastructure remains intact. Streets are clean and well maintained. Landscaping along paved sidewalks is tropical and gorgeous. A bustling central market offers fresh, and in some cases, live seafood. Meats, cheese, fruits, veggies, and a wide variety of specialty items are all available at excellent prices. Small scale supermarkets offer dry goods, canned food, and other basics. A handful of major banks are situated in the town center with ATMs.

The closest airport is in Portoviejo, less than 45 minutes away, with regular flights to Quito and Guayaquil. Overall, Bahia is very “livable” with few sacrifices to be made by the more adventurous expat, except for the lack of first class healthcare and a yet-to-be-established expat community.

Bahia’s potential to emerge as a hot new tourist destination will depend on the success of new developments taking place in the area. There are plans to begin offering regular flights from Quito to San Vicente, a fishing village located across the bay from Bahia. The airport exists, but regular flights are not available. Locals in Bahia are excited about the construction of a new bridge, which will connect Bahia to San Vicente by road and open up more commercial ties between the two cities. The bridge construction is well underway.

Note: The Free Report above is an excerpt from Ecuador 101 – E-Book Guide to Living and Investing in Ecuador. The Ecuador 101 – E-Book is provided for free to Members of Retire Worldwide.

Start Researching Your New Lifestyle Options Today! Join Retire Worldwide!

As a Member of Retire Worldwide, here is what you receive:
		Report #1 – Overview of Living and Investing in Ecuador
		Report #2 – Living and Investing in the Highlands of Ecuador
		Report #3 – Living and Investing in Coastal Ecuador
		Report #4 – How To Buy Real Estate In Ecuador
		Contact Information For Two Excellent Real Estate and Immigration Attorneys in Ecuador
		Report #5 – Residency and Retirement Visa Options For Ecuador
Yet, there is even more… as a new member of Retire Worldwide you will also receive the following Retire Worldwide Exclusive Reports:
		* “The Top Five Places To Retire Worldwide” – a compelling overview of the best places to retire… places that offer value for your dollar amid beautiful and exciting environments. Click here for an overview of this report.
		* “The Top Ten Retirement Visa Programs Worldwide” – some countries offer special incentives if you retire there while others have unique programs for people interested in working or starting a new business. Read about the residency visa requirements for the top 10 countries for retirement. Click here for an overview of this report.
		* “Undiscovered Beachfront” – the most affordable beachfront property in the Western Hemisphere where condos sell for $40,000 and beachfront land starts at $1000 per acre. Click here for an overview of this report.
		* “The Top Ten Things You Will Miss If You Retire Abroad” – living and retiring abroad is not without its challenges. There are certain things you might miss from home, and its best to know about these things beforehand.
		* “Business In A Briefcase” – yes you can make money from your new home abroad! This course introduction shows you how to join the wave of people who work and live anywhere they want. Click here for an overview of the course.
		Photo and Video Collection – You will have access to an online collection of over 1600 photos and video clips from some of our featured destinations all over the world. These photos and videos will bring the outside world to life and give you a genuine idea of what it really looks like in some of the world’s top retirement destinations. Click here to see a sample slide show.
		Retire Worldwide E-Letter – Members receive a one year subscription to the Retire Worldwide E-Letter, delivered via email. The E-Letter offers ideas about how to spice up your retirement and how to make educated lifestyle and investment opportunities.
		Telephone Consultation – Members are entitled to a free 30 minute telephone consultation with Michael Manville, an experienced relocation consultant who has traveled to more than 35 countries. Michael has been interviewed by the New York Times and Newsweek and is a published author for NuWire Investor. Whether you are considering a two week stint to Costa Rica or full time relocation to Argentina, Michael will offer you unbiased guidance based on his unique knowledge and experience.
		Networking – As a member of Retire Worldwide you will have the opportunity to communicate with and meet other members. This is a great way to get to know people with similar interests and start to build new friendships with like-minded people.
		Tours and Events – Members will be invited to join organized tours of our featured destinations. Tours will take place in top retirement destinations such as Mexico, Costa Rica, Panama, Argentina, and the Caribbean. Events and gatherings will also be organized to bring members together to learn about new lifestyle opportunities abroad.
		Professional Contacts – Members will have access to professional contacts in different countries worldwide who have been used and recommended by other members. This gives us all an opportunity to recommend someone who has provided a good service. In this way, you benefit by having access to solid international contacts including tour guides, real estate agents, rental agents, attorneys, medical physicians and many more.
		Discounts – Retire Worldwide uses its clout as a large association to negotiate discounts for our members on everything from hotels, tours, apartment/villa rentals, resorts, immigration services, and more.

If your dream lifestyle goes beyond borders, we invite you to join our organization.