A 2 bedroom apartment in Ecuador… new building… beautiful furnishings… good area of town near shopping… good short-term growth potential… asking price= $40,000 (similar apartments are in the $50-60k range). Furnished, could get around $500/mo rent. Good buy, within my current budget.
The problem… it’s next to a small bridge and dusty park.
Now, in the US, being next to a park is a plus… but not in Ecuador. Parks and areas underneath bridges in the bigger cities have BAD reps in Ecuador. Locals will tell you, beit true or not, “that’s where all the junkies and thieves hang out at night.”
It’s true, when I first arrived in Ecuador a few years back I stayed with a friend in a rather ghetto area of Quito (the Vicentina Baja), and the first thing he told me was to walk fast when I have to pass under the bridge near his house.
After consulting with a few local friends (who quickly mentioned the same thing about the property) I decided not to buy, the place would probably be difficult to rent out to the higher-end folks.
Rental incomes can be really good in Ecuador (I’ve seen returns higher than 30% annual if you buy right), but consult a few locals before buying, and don’t get caught by the dreaded “bridge effect”!
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