The Ecuador Insider – Page 173 – Everything you need to know before you move to or invest in Ecuador

Changes in Cost of Living in Ecuador -2Q 2011

I’ve spent a few months outside Ecuador, now I’m back, and with the falling dollar and other things I was worried inflation may be hitting Ecuador hard.

However, I’m pleased to report that I can only notice inflation in a few select products, for the most part, the prices seem to be remaining steady so far in 2011.

Transportation costs (buses and taxis) seem to be relatively the same as at the beginning of 2011. You can still get plate lunches starting around $2.

One website where you can compare how Ecuador costs stack up against other countries is WikiCostofLiving.com.

What’s your take?

An Overlooked Gem: Where to Buy in Guayaquil?

As for Guayaquil, where you buy depends on your target market… if you’d like to rent to “gringos or foreigners short term” Id buy in urdesa or in the Centro near the Malecon or Parque de Iguanas area.

If youd like to buy cheaper and rent cheaper to middle class ecuadorians id buy in Alborada…its centric and an area on the rise and many middle class locals would like to live there.

If youd like to rent to upper class ecuadorians, theres no place like the Samborondon area… far out of town and US-like, personally the area makes me sick but rich ecuadorians love the place, it is a bit safer than the city proper…the rich locals dont even consider living anywhere else in Guayaquil…

An up and coming area is the Ferroviaria district, on the other side of the river from the MALECON de salado… once a favela area, now its turning into a peaceful, centric place to be… i know of a 4 unit rental complex for sale there fof a friend for around $150000, i could get more details if interested…

For me, one of the top all around value areas is Urdesa… close to everything, more character than samborondon, and still upper middle class to please the locals…

Another surprisingly good buy is the Garzota area…near the mall del Sol…that area is extremely centric, coming up fast, and easy to rent out to both locals or foreigners…

I wouldnt buy in the south of the city, no one who can afford not to be there wants to be there, or in one of the “reposessed” favela style areas in the cities’ outskirts because image for the areas is everything and its hard to repair that, it would be a much more long term investment. Do you have foundation problems? In every aspect of life, preventive maintenance is much more economical than a major overhaul, Foundation Repair Company it’s a good option for a preventive maintenance.

As for the high-end lake front Malecon 2000 properties in the Centro… i think they are OVERPRICED… rich locals who could actually afford to rent those from you wouldnt touch those units in the Centro with a 10 foot stick… the Centro has a really bad image in their heads thats hard to erase, and its true, at night that area is not the safest place to be …

How to Bring Your Household Goods to Ecuador Duty Free

This week on my weekly Ecuador Insider’s newsletter I’ll reveal How to Bring Your Household Goods to Ecuador with Ease, to receive this valuable info this coming Sunday, sign up below, it’s free! (You can unsubscribe at any time):

The “Local” Trick to Receiving Mail Securely in Ecuador

One thing you may take for granted in the US is the reliable post service, unfortunately, Ecuador, doesn’t have a reliable one.

Sometimes, email simply won’t do!

So, what do the locals do when they have to mail important things within Ecuador? They use the local airlines and bus companies!

Let me explain.

For example, if you have to mail something from Quito to Cuenca, the best way to do it would be to go the package desk of an airline that flies to the packages’ desired destination in the airport, and mail it so it goes under the plane of the airline.

The airline will receive your package or letter, give you a receipt, and proceed to mail it for you in the cargo section of the next plane that leaves.

Once at the destination, the person who receives the letter needs to go to the airline counter with the code of the mailing and their ID card or passport in order to claim it.

Mailing a small letter in this matter within Ecuador will cost you around $1.50 and usually arrives within 1-2 business days.

For smaller cities that airlines don’t service, you could mail a package or letter in similar fashion securely with the local bus companies. Just go to the bus terminal and to a bus line that travels to where you want to mail to go. At the counter, pay and as with the airlines, get a receipt. The bus company will then hold your package in their office at the destination until the recipient goes to pick it up.

This is how the locals do it!

As for receiving mail from abroad (or sending it) both DHL and FEDEX have offices all over Ecuador and are reliable options.

If you liked this you’d love my weekly Ecuador Insider’s newsletter where I reveal everything a savvy investor must know before they invest in Ecuador, sign up below (you can unsubscribe at any time):

Good or Bad Buy? The Ecuador Stock Market

This week on the Ecuador Insider’s Newsletter I showed you how you can profit investing in the Ecuador Stock Market.

The Ecuador stock market is still in diapers compared to what you may be used to in the States or Europe. But, it is an interesting alternative none the less. But there are many class to teach you more about stock marketing and investments, here is a thorough review. Most families in the States have the financial advisor, invest in IRAs, bonds, mutual funds, and even stocks. In Ecuador, it’s not like that.

Many people in less affluent nations have much fewer investment options than we do in the States, and are often fearful of investing money in things like a stock market.

Instead, they put their money in things like real estate, businesses and even cars, so that, primarily, so they don’t spend it.

But, although most are unaware, there actually is a local stock market that does offer some interesting investment options.

Requirements for investors

Have money. It doesn’t matter if you a foreigner or not, doesn’t matter if you bank in Ecuador or not. You can invest by simply showing your passport in a broker house. You can visit the MBoxWave website for more details on how to trade and make money. Similarly, You can start trading with Axia futures. The Training Programme is that the product of the collective knowledge and knowledge of the Elite Traders of the AXIA Community from round the globe. it’s skills-based and is made on the methodology of developing intraday Futures traders within the biggest markets within the world.

How to get started

First, you need to go to a broker, like the one in the investment department of the Banco Promerica on the corner of Amazonas and Colon in Quito. Walk into the bank and ask for the investing department (Say, “quiero invertir en la bolsa.”).

They can then explain your options and place a buy order for you for the stock of your choice. At the time of research a few months back they charged 1% commission plus a .09% stock exchange fee. The minimums usually start around $1000 but can be negotiated.

The buy order is then manually taken to the stock exchange where someone has to find a seller at the price you are willing to pay per share. For example, if a stock is trading at $4.50 a share, you could place a buy order at $4.30 and see if anyone out there is willing to sell at that price. Your buy (or sell) order will be valid for 5 days, if there are no takers, it gets nullified and you have to place another.

Stocks in Ecuador pay dividends and can also appreciate in sales price, similar to the earning methods of the stocks on the DOW.

Two of the most recognized and successful stocks on the Ecuador market are those of Supermaxi (La Favorita Corp.), and the National Beer Company (Cerveceria) of Ecuador. These companies have very little (to no) real competition in Ecuador, are very liquid with good cash flows, and have proven to pay out good dividends and value to their stock holders over time (anywhere from 5-30% annum more or less).

Also on the exchange are other large Ecuadorian companies, like several local banks, but their stock prices relatively stay flat and are a safer, more stable play.

A great place to see actual stock market prices, trends and stock figures, is the official site (in Spanish) of the market, bolsadequito.com.

Other investment options

Besides investing directly in stocks, there are other options.

One interesting option for some are buying “Obligaciones” or commercial papers on the stock exchange of specific companies who commit to giving you a set return on your investment. These work similar to CDs, and are set for 1,2, or 3 years on average and pay between 5-10% in set increments upon purchase.

My personal favorite is the CDs the local banks sell. You can start by buying one for 30 days at around a 4% annual interest clip. Obviously, with these, the longer you commit your money for, the higher % interest you will receive. Inquire about these options in your local Ecuadorian bank.

One option some don’t recommend is investing in local Ecuador government bonds, because they are paying around a low 3% and are very risky (think of the Ecuador Government like that friend of yours who always asked for money and never paid you back).

Investing in the Ecuador stock market is not for the faint at heart but can be heaps of fun. Buyer beware!

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