“I don’t know, $100k for a beach house?” …
…I said to a friend this week who said she was interested in buying one she saw beachfront for $100k.
Not sure, but spending six figures for a second residence where I’m not even going to be, nor put a business, just doesn’t flow with me.
That’s why I left the US.
Property prices just didn’t make sense.
With prices so high how could I ever show myself a reasonable ROI?
Naturally, I know a lot of things I’d rather do with $100k here in Ecuador.
Things that could show me, or you, a much better return on investment.
Building a beach hut in Ecuador, or a few, on the same property.
On one stretch of the southern Ecuadorian coast, from Puerto Lopez to Olon, I’ve seen beach huts rent for $50 a night.
Conservatively, if you have your place rented for only half the nights of a month, that’s an income of $750 a month.
Before you laugh, know Ecuadorians are actually quite skilled builders of beach huts, and nice “mixed” construction ones built with a mixture of cement and bamboo with thatch roofs and tile floors actually can look pretty nice.
I’ve experienced, in 2012, that it takes only a month for a skilled group of 3 Ecuadorians to build one, charging a total labor cost of about $1000.
2012 material costs for a 5 meter by 5 meter one with a kitchette and one bed and bath are as follows (high ball estimates):
60 cement sacks= $420
15 cana rolliso (bamboo stalks)= $40
10 carga cade= $170
5 m of wire = $5
6 m2 of stone = $120
5 m2 of sand = $100
8 cuartones= $20
12 tablas= $48
16 12 x 12= $240
16 10×12= $180
20 lib alambre (wire) = $20
10 lbs nails = $15
60 Cana picada (treated bamboo stalks) = $180
1 juego sanitario (toilet, sink, shower head) = $100
2 wooden doors = $160
2 windows = $100
water tubes, fixtures and install = $100
electrical wiring, fixtures and install = $150
Stones for base = $150
TOTAL MATERIALS COST = $2318
LABOR COST = $1000
TOTAL COST ESTIMATE= $3000- $3500
I know what you’re thinking, “but can you really use bamboo instead of steel rebars and have a construction last?”
Bamboo is natures rebar. Ecuadorians use bamboo to hold up cement as it dries.
It’s that strong, and here, bamboo is cheap.
Plus, it can last for a very long time, but there is a process you need to do to maintain it.
…So, if you invest $3k in something that can produce $750 in revenue a month, thats a pretty good buy… but of course you’d have to figure in the land costs, but if you buy right, like how I show you how to do in my full Ecuador Property Guide, that can still be cheap too.
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