The Ecuador Insider

By Domenick Buonamici

Low maintenance. Low effort (most times). Good return… I like vacation rentals, especially the siesta keys vacation rentals on the beach which I so frequently travel to.

Ecuador is great for vacation rental businesses because it has a constant year-round flow of tourists, little competition (as of yet), and you can buy in relatively cheaply.

For example, many charge over $50USD a night for their rental, and you can buy a decent condo in Ecuador in many places for under $40k…with a 50% occupancy…if you do the math, you’ll see in the above example you’d be making around 30% annual return on investment.

Of course, this is an oversimplified example, as a lot of factors will determine your ultimate success or not with this business, but just wanted to give you something to think about and give you a few pointers I’ve learned in the trenches…

A few things I’ve learned:

-Buy a “Keyless entry” system in the US and install it once in Ecuador. With it, all you do is give people the password to get in, and you can change it with your property manager at any time. WAY easier than trying to get people the keys (and getting them back when they leave!) They start around $170 and can be found in many Home Depot-type stores.

-Promote yourself heavily online. There are no walk ups in this business. You probably won’t even have a sign on the door. So be sure to promote heavily through not only offline sources like local realtors, but also online through both third party websites and your own website… to learn step by step how I promote my vacation rental businesses in Ecuador see my new eCourse here.

-Property management is key. A good property manager to clean and handle problems that may arise is important. For recommended property management companies in Ecuador and other high quality professionals check back for the newsletter next week when I introduce my new Ecuador Expert Directory.

-Don’t get too far off the beaten path. You can get off the beaten path and still get business, but I have seen vacation rental businesses do better when they are firmly on the beaten (travel) path, albeit with more competition.

-Don’t limit yourself to the coast. I’d say 90% of the people I talk to on the site are interested in buying near the beach in Ecuador. That’s fine, the coast is great, but remember that’s only one third of Ecuador, (the Coast, Andes and the Amazon) and all three parts see heavy amounts of travelers (and have different peak seasons).

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I got these prices snooping around a local grocery store in the Quito area in 2010.

butter (2 sticks)= $1.40

cheese 250g= $1.50

Mango (peeled, ready to eat) = .50

Grapefruit= .60/k

Limes= .75/k

Red delicious apples= $3.03/k

Bag of lettice= $1-1.50

Vegetable oil= $1.93/2L

Rice= $2/2k bag

Pasta= $.75/400g bag

Heinz Ketchup= $2/400g

Olive oil= $3.60/250g

Fresh Coconut= $.80

Strawberries= $1.50/500g

Chilean Wine= From $5.76/bottle

Sugar= $1.36/2k bag

Oatmeal= $.63/500g

Tea= .75/box

Nescafe Coffee= $2.01/50g

Bread= $1/loaf

eggs= $1.80/12pack

milk= $1.01/1L

fresh squeezed orange juice= $1/1cup

Absolute Vodka= $19.33/750ML

Jose Cuervo Tequila= $24.83/750ML

Corn Flakes= $4.13/500g box

Full Chicken= $4.31

Ground Beef= $3.03/.481kg

Pilsener(local) Beer= $2.87/6pck

Heineken= $1.19/1can

Budweiser= $.91/1can

OFF bug spray= $4.39/250cm3

Colgate toothpaste= $1.35/75ml

Listerine= $3.61/360ML

Mineral Water= From $.30/250ml bottle

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I spent a year of college at the University of Manoa in Honolulu, Hawaii.

Recently, this month, I went back for a weekend trip, so I thought I’d take the chance to compare life in Hawaii (a truly under-rated retirement destination) to my current home, Ecuador, where I have been on and off since 2005.

I love both places, but even though they may seem similar on the surface, they are very different. Both with their pros and cons, you just have to pick your poison, like picking between a blond and brunette.

Here they are, compared:

Costs: Ecuador wins. Ecuador food, housing, public transport, healthcare and real estate are all cheaper. No personal maids in Hawaii, but you do get the typical, comfortable American style of living you may be used to.

Food: Ecuador wins. Although I LOVE Hawaiian food, Ecuador has more variety and the food is far cheaper.

Weather: Hawaii wins. Hard to compete with 74-82F degrees year round. If you were to read tourism info for Hawaii, you’d know that Hawaii gets more sun than Ecuador but Ecuador has more climatic variety, cold mountain zones, spring-like valleys, the humid Amazon and the breezy coast.

Beaches: Hawaii wins. Hard to compete here with the breathtaking beachfront cliffs and sapphire blue waters of Hawaii. tourism info for HawaiiEcuador has more California style beaches with cliffs, golden sand and darker water.

People: Ecuador wins. Ecuadorian people love foreigners (especially ones from Europe, Australia and the USA) and treat them very well. In Hawaii, anyone not from Hawaii is a “Hawley” and in some of the smaller villages, local dislike for outsiders can be very apparent!

Attractiveness of the Women (and men): Hawaii wins. The surf culture of Hawaii has produced really beautiful people (both gals and guys) with cut up bodies. But Ecuador women are under-rated, many who come are pleasantly surprised. And they are more laid back and easy going than from many other Latin countries.

Real Estate: Ecuador wins. Hawaiian real estate boomed along with the mainland US from 2003-2006, and since has dropped considerably, making now an interesting time to buy. But Ecuador still wins this one!

Residency options: Hawaii wins. Obviously, being an American state, for American citizens, this one is a no brainer.

Business Opportunities: Ecuador wins. I can only speak from my own personal experiences, and Ecuador has treated me well although if you speak Japanese Hawaii might be a good place for you (there seems to be a large up-swing in Japanese tourism currently).

Healthcare: Ecuador wins. Unless you are on Medicare (which only would cover you while in the USA) Ecuador is the choice here for having much cheaper, yet still high quality options available.

Public Transport: Ecuador wins. In Ecuador buses are a quarter, and they are EVERYWHERE. Taxi fares start at $1. In Hawaii, there is a decent bus system (maybe better than ANYWHERE in the mainland US) but Ecuador still wins out here.

Expat Community: Hawaii wins. In Hawaii yo have something for everyone and people from all over the world, in Ecuador, it is still a little off the radar still.

Safety: Hawaii wins. Ecuador is safe, but being in the US, backed by the US legal system and laws, Hawaii has the edge on this one.

Hope that helps! Dom

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Many ask me this, but honestly, in a word…”no”…Ecuador is not wheel chair or handy-cap friendly.

Just like in many developing nations, many curbs are not cut for people in wheelchairs, and even older buildings have not been too considerate to folks in wheelchairs.

However, this is slowing changing and many of the newer buildings are slowly becoming more wheelchair-conscious.

Even the taxis and other public transport options are not particularly equipped for wheelchairs. Just tellin’ it like it is, sorry about that.

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