This home with land in Ecuador sells for less than $100,000.
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.
You don’t have to sacrifice modern living when you move to Ecuador. This is the kitchen in the home photographed at the beginning of this article.
After two lengthy visits over the last two years, 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 against tourists. 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 and for under $80.
- Condos in Bahia de Caraquez in Ecuador can be found for under $50,000
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 neighbours 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. 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.
Overall, Ecuador is an exciting and potentially very rewarding opportunity to learn, explore and adventure into a developing nation full of potential.
EcuadorAtYourService.com is a good place to make direct contact with experts on the ground who can help make your dream a reality.
I was wondering about the visa requirements for moving there long term. Also, I was wondering if there are any expats that can be contacted by email for questioning. I am interested in the Cuenca area..
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This post continues to attract a lot of attention so I will make a few updates. First, the name the town with the condos for $40,000 is Bahia de Caraquez, although from what I am hearing these deals are not as easy to find now and prices for new condos are quite a bit higher. I seem to have a strange knack for noticing places before real estate prices make a big jump to the upside.
Second, a lot of people seem to be worried about Correa and compare him with Hugo Chavez of Venezuela. Personally I think the differences between Correa/Ecuador and Chavez/Venezuela are night and day. Mainstream media has (wrongly) thrown them into the same category, mainly because Correa has been tougher than past governments on allowing mining and energy companies to loot Ecuador’s natural resources than previous administrations. But people shouldn’t assume that a “socialist” government will have some sort of negative effect on their lifestyle in Ecuador. During my recent lengthy visits, I couldn’t see any signs that Correa was “ruining” Ecuador. If anything, I saw the opposite – new roads, bridges, airports, etc. Sure, people on the street will still complain but Correa is doing a better job than most, which is why he was voted in for a second term. In general, my experience is that governments throughout Latin America are slow, bureaucratic and corrupt – that’s a given – this is a fact of life throughout Latin America, even so-called “safe” places like Costa Rica. The fact that Correa is a bit of a lefty is really not a serious factor for the average expat, unless you are a large mining or oil company, or plan to do some large scale business. Anyway, leadership in America is just as capable of screwing up your life as the leadership in Ecuador, if not more so.
Is Ecuador a “risky” place to invest? If you are talking about real estate, buying property is a risky proposition in just about every marketplace right now. But the risk of buying property in Ecuador is not related to the idea that your property will somehow get confiscated by a left wing government, the bigger risk is that it might be difficult to sell, especially if you paid too much in the first place. Again, these risks are present in every country in Latin America.
I applaud some of the comments in this post from people who have obviously experienced Ecuador to a greater degree than myself, that’s the idea behind Retire Worldwide.
This article is now 2 years old – how about an update – love to hear responses to some of the negative responses. Still a good education.
Elle – where did you buy your house? I have high schoolers and can’t find much info about schools there.
I researched Panama for a place to retire for about one year.It became too expensive so I started looking at Ecuador. I ended up buying a cute 2 story beachhouse and property with the Pacific Ocean as my view out the upstairs bedroom windows!I am so thrilled. I paid 30K for it. I now have an awesome place to retire and my friends and family didnt really know where Ecuador was at first! The people are amazing and my first visit there went without a hitch.I hope not too many people discover this gem of a country for a long time! LOL
I have lived in Ecuador for a while, I love the place…I dont know about correa but he has done many good things too for the country…for instance, now is the first time that the richhave actually had to pay taxes, not really a bad thing…but their the ones who own the media, and spit out some interesting propaganda as should be expected…not a correa fan, but all sides should be weighed…dom
DUE DILIGENCE ESSENTIAL
BEFORE moving to Ecuador or anyplace outside your home country:
Ecuador can be a great country to settle in BUT:::
Live in the area at least 6 months before you really considering settling down.
Some communities love gringos, other detest them, and will rip you off every opportunity they get.
Some communities have extremely high crime rates (including Cotacachi by the way, and many on the coast). I know of three foreign families around the Cotacachi area that were robbed at gun point in the middle of the night- there are probably more cases I don’t know about.
Learn Spanish. Not worth coming down if you don’t speak it.
Some parts of Ecuador have a very long rainy season; others an interminable dry season.
Some communities struggle over conflicts over water resources- so be extremely wary where you buy.
Finally, and what should be a obvious cautionary note:
DON’T trust what the realtors are selling- find out for yourself. Patiently and diligently.
Their main reason for being is to make money- not your comfort or happiness
I just returned from Ecuador in feb.2010 I went to investigate the country to retire or make an investment. I saw most of the countryside and coastline. I cannot speak for the govt system, but the people are fabulous, friendly and I found them honest. They are trying very hard to develop tourism & keep the tourists happy.
We started in Guayaquil. A fabulous nature historical park there, best I have seen…. We found the city very safe. A beautiful new Malacon.OF course some Poor areas, but never dangerous. There was always police around to answer questions or give advice.
My Spanish was limited as was the English of most, but they are very keen to learn and practice. In all the hostels, hotels or guest houses someone spoke English, so there was no problem in moving around the country. We were 2 mature women traveling together. We took taxis from one village to another one hour ride was approx 10.00
The coastline is gorgeous long wide white sand with loads of fish, thus many fishing villages…
We stayed in a wonderful guest house in Salinas on the coast high on a rocky hill overlooking the beach and malacon and awesome cabanas on the hillside across from the seaside up the coast. We went from sub tropic to tropic in our travels. The weather was misty in the mornings but hot and sunny in the afternoons and pleasant to sleep. There is a great surfing town known all over the world booming with young people and many markets, busiest place on the coast. Great hostels complete with pools and spas for 25.00 per night in that area.
There is some development but not a lot…. we visited a development company 2 hours south of Manta. They have a good plan and it seems to have the info-structure in place. They will sell 1400 lots fully serviced from 7,000 – 30,000 right on the beach. no lot is further than a 10 min walk to beach. I was interested in commercial lot my quote was 19,000 for 4000 sq feet, I could build up one floor and have a roof garden one block from beach. This whole project (gated community) will be finished in 5 yrs. I am still thinking on it as I haven’t investigated the govt small print yet for foreigners,they tell me no problems but, I am still apprehensive. I found this country to meet many needs. It has everything weather, terrain, versatility adventure, etc. from Quito 2 hours in any direction gives you a different piece of the world, mountains, amazon rainforest, hot springs, cloud forest, beautiful beaches and coastline and of course the Galapagos islands.
I did meet a few mature people who have taken the plunge and come back every winter. I spent a little more than a month and had a very positive experience.
I will return for further study and adventure!
By the way I would like to know the name of the development or place where the picture of the house is located. Does anyone know? As yet I have not found anything remotely similar in Ecuador for under $100,000.00.
Lots of interesting comments here but would like to add a couple of my own. Ecuador is one of the most corrupt countries in the world. I have lived here for over thirteen years and do not find Ecuadorians for the most part to be honest. As always there are exceptions to the rule but my advice is to be very careful when doing business here and have everything done legally with documents. Yes it is inexpensive to live here but the bureaucracy is still tremendous. By the way John the picture of the peninsula where condos supposedly can be had for $40,000 is Bahia de Caraquez.
I just stayed in a wonderful water front property in Bocas Del Toro called Tropical Suites and I must say it was the nicest hotel on the whole island. Definately worth another visit if I can save up for another vacation.
After just returning from Ecuador I am far more impressed than I thought I would be… however, I am hesitant on making an investment (though not living) in the country. There is a huge, HUGE, degree of negativity and skepticism on the street regarding the future of the nation under the Presidency of Correa. As Manuel Loredo pointed out in this blog President Correa is not a friend of freedom nor Capitalism and he is driving his country towards bankruptcy … Yes, the people are wonderful, Yes, the country is beautiful, Yes, it could be a good place to live (as long as you have a quick out) but there is a huge difference between Panama (then) and Ecuador (Now). Becareful in jumping in to the BUY frenzy before doing due diligence. 12/28/09
I have visited equador several times.Beleive me it is not a patch on Panama.-
And the weather leaves a lot to be desired.All a bit of hysteria being trumpeted over a rather luke warm opportunity
If you invest here ,it must be for the long term.
It will take years for this Country to reach the standards I would consider good enough to retire to.
I visited Ecuador last year for a 2 week vacation mostly on a whim. I spent a majority of my time in Manta area, but also stayed in Quito for 3 days. The weather is cooler in Quito for sure as you are up in the mountain. I would never live in Quito as it is too congested for my tastes. Traffic can be as bad as any major US city. Stop signs and turn signals are optional. Taxi drivers are for the most part honest, but tend to drive the taxis like they stole them. I also don’t think they believe in emission standards for the buses and public transportation.
Lots to do in Quito, however. Many lovely ladies to look at as well. Seemed to be a pretty vibrant night life. The open air markets are a sight to see.
Overall in Ecuador, the people are very friendly. I know enough Spanish to survive, but I am not fluent. If you try to converse in Spanish it is very appreciated as many people, especially outside of Quito do not speak English. I want to go back and visit the highlands next time.
Can anyone recommend some good spots?
looking for real estate in the Salinas area ocean front if possible near the malecon. I think I would prefer property where there is no monthly fees.
Can anyone suggest a local representative that could act as an interpreter, adviser, real estate negotiater, and further help to coordinate a move to Ecuador?
what is the weather REALLY like in Equador, I have heard so many diferent variations? Also what is the health care like? is it as a high standard as Europe,is it affordable? Thanks.
John, Micheal won’t give out the name of the town, or very many details, as this newsletter is a front to subscribe (for a fee) for more information. Nothing is free in this world.
Michael, great article…what is the name of the town with the condos for $40,000?
Sorry, just an aside. Lived there for 10 years. married to an Ecuadorian. Owned my own business. Moving back after an absence of 25 years to retire and cultivate coffee. Fluent in the language and culture. For what it’s worth.
Well, it would seem that your travels did not take you to places like Rio Intag, or some of the other outlying towns of Ecuador, where things are not quite as prosperous. Improving yes, but far from prosperous by any standard.
Ecuador has a history of socialist and Leftist influences, especially during the years Buccaran and his family had any influence at government levels. This has always been an issue and is nothing new. If it gets to the point of really curtailing freedoms, look for change. History speaks pretty loud.
History also shows that people like Chavez come and go, and life goes on. The simple fact is this, you always get what you expect. Anyone moving to Ecuador with the idea that it will be anything but positive, and is fully invested in that mindset, will get what they focus on and think about the most.
What do you prefer?
Panama offers a 15 year property tax exemption for purchases of new homes under 60K. How about Equador?
My fianace Tom and I are going to Ecuador this Dec. and would like to look at some properties: is that possible? How would we line t his up?
WE are going w ith a small group but of course have extra time to look around and would like to .
thans,
Jill
per your Panama 101 I did travel to PTY and interior fall07….. yes, incoprorated and opened banking relationships…. world economy went ‘south’ so not has progressed since….. Equador may be the spot…thanks, Max
Hi,
Living in South Africa, we decided to move to Uruguay. Went to have a look, bought 2 plots in Piriapolis and busy getting all the paper for a resident visa. BUT…BUT… checking the weather
in Piriapolis… we find it a bit cold for our taste. We now thought of Ecuador, but what are
the requirement for a resident visa, without this information…we can go futher.
Kind regards
Lesley
Nice article.
Would like to check it out further.
JG
pLEASE E.MAIL ME REAL ESTATE OPPORTUNITIES IN eQUADOR ON OCCEAN.
THANKS,
MUKESH PATEL
Michael- thank you for keeping us informed on retirement opportunities in the Americas.
Tisa and Paul McKee, Boerne, Texas
Enjoyed your article. I have never been there and really like Panama but noticed in May the prices for homes was more than in Mississippi in the USA where I live. Would like to know more Steve
Your article sounds interesting. How about the strong relatively communist influence from Venezuela. The interference of Venezuela in Ecuadorian affairs, makes any investor nervous. Venezuela has been nationalizing private enterprises. They are shutting down media that does not agree or creticize the government. President Correa who is a disciple of Chavez, can ruin all the good things you said about Ecuador in your article. I suggest Americans should wait before risking their lives and fortune to invest in a communist state. As long as Correa and Chavez are around, Ecuador represent a risky place to invest and live. what do you think about my assessment. I have traveled a lot, and work in the area.