Where’s the hottest long-term rental market in Ecuador?

“This is insane, feels like a job interview.”

I thought this week as I found myself being interviewed for the “priviledge” of renting an apartment in Quito.

Next to me was another guy who was being jointly interviewed for the same apartment.

“So why should I choose you?” The owner of the apartment asked.

As I sat up in my chair I replyed… “Well, I’m clean, quiet and pay on time.”

Then she asked the other guy the same question and said OK I’ll call you tonight if I choose you.

As we left other folks interested in the apartment were entering.

She never called back.

I didn’t get it.

Now, I’ve rented in hot rental markets like San Diego, Honolulu, Madrid and China, but I’ve never seen a place where its so competitive to find a decent rental at a decent price.

The demand is huge. Certainly one of the best opportunity areas to own a rental in Ecuador.

It’s definitely not like the vacant, abandoned buildings in many areas of my home city, Cleveland, Ohio.

Quito is at capacity.

But I’m not surprised.

The planes to Ecuador are packed.

People are coming in droves.

The price is right.

Like one friend told me Brazil was like 10 years ago.

Now, the planes to Brazil are practically empty.

It’s too expensive due to the exchange rate. Nice country, but they’ve priced themselves out.

The sweet spot right now, or the rentals that get taken the quickest in Quito are the ones in the north of the city anywhere from the Mariscal/Floresta/Catolica area of Quito up until about the area of the “Y” and the Jipijapa area.

The most in-demand area is the very centric Carolina Park area near the biggest malls in Quito like Quicentro.

That’s where most locals and foreigners alike want to be.

The long-term rental apartments that go the fastest are the 2 bedroom ones in the above area in the $250-400 a month range.

Literally, for decent rentals in the above-mentioned area in this price range if you publish an ad in the local paper by the afternoon you’ve found a long-term tenant.

Really its the quick.

And the wait is only a bit longer if your rental is higher-priced.

Now, you could buy in this area starting around $35-45k and if renting long-term for the above prices would generate a 10% annual return not to mention the capital gains the market is experiencing.

Annual property taxes for an apartment in Quito of this value usually run less than $100. And condo fees are usually less than $40 a month, and the tenant usually pays that.

Nicer and newer 1 and 2 bedroom apartments in the same area can go for around $60k and you could command a bit more rent.

Quito rentals are hot indeed.

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Related: Austin Tenant Advisor Employee Office Space Design.

1 undiscovered mountain town in Ecuador with true “eternal spring-like” weather

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I hear it all the time.

“I don’t like the heat and humidity of the coast of Ecuador but frankly, Cuenca is too damn cold.”

I know, I understand.

I usually respond just like I did in my last email… “A lot of people try to push Cuenca as “eternal spring” but actually it’s more like eternal ‘late fall’ “.

Now, I’ve lived in places with true eternal spring-like weather.

Example, Hawaii and Medellin, Colombia.

You know, places that have constant year-round weather where you can walk outside with a t-shirt and shorts and not even think about the temperature cause you are neither hot nor cold.

The problem with Medellin? It rains too much.

The problem with Hawaii? Not much, but if you press me I’d say it’s too expensive and many locals really don’t like “outsiders” or people not from Hawaii even though the ones that work in tourism well try to hide it.

In fact, Ecuador does have places with eternal spring-like weather.

Places just high enough to avoid the muggyness, mosquitos and humidity of the coast while not being as high as Cuenca or Quito.

One such place is one you’ve never heard mentioned before.

Zaruma.

Zaruma is a cozy town of about 20,000 folks built into a cliffside with a wooden-spanish-colonial style old town surrounded by lush slopes of coffee plantations in southern Ecuador about 3 hours from Machala, 4 hours from Loja and 6 hours from Guayaquil.

The town was founded hundreds of years ago by ambitious miners in search of gold.

Further downstream the mines still run rich, but up in Zaruma the mining has stopped.

All that’s left is a stunning, little, undiscovered place to live.

The town is perched at an elevation of 1200 meters (3937 feet(about half the elevation of Cuenca)) and the year round temperature hovers around 22 degrees C (72 F) and drops just a bit cooler than that at night so you can sleep comfortably with a blanket over you (no AC or heat needed!).

The nearest airport is Santa Rosa, about 1 1/2 to 2 hours by car away.

Most the locals shop in the fresh produce market right in the middle of town and get their bare necessities from the little street stores that dot the town.

The town has a free, public hospital that is known for having good service.

The locals are friendly and quick to strike up a conversation with one of the few foreigners in town.

Within Ecuador, Zaruma has a great rep for it’s amazing coffee, particularly beautiful people and sweets.

Rents for a 2 bedroom house/apartment just outside the old town start around $150-300/month and plate lunches start around $2.

A local specialty is the TIGRILLO, a breakfast dish made of mashed plantanes, cheese and eggs.

A cool thing many visitors do is take a guided tour of the town gold mine, now extinct, it was an actual mine for hundreds of years and the tour is done by an actual miner and is very informative (and free!).

I’d stay in the Cerro de Oro Hotel in the town center, nice, clean rooms for only $10 per person. Ask for a room on the top floor for some spectacular mountain views but watch your head on the way up the stairs. Any taxi in town knows where it is and can take you for $1.

Buy your coffee at the local distributor, an 80+ year old man with a great sense of humor, Don Marcelo Valverde, he has his shop in the town center, just ask around for the “tienda de Don Marcelo” and folks can point you the way.

The only negatives of the town I see at this point for expats wanting to take residence are the distance to a major city and the fairly steep town roads.

Foreigners? Not many, yet.

There you have it, one mountain town in Ecuador with a steady, warm-yet-comfortable climate year-round.

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Photo Diary of Zaruma Ecuador

Here are a few pics from a recent trip I made to Zaruma Ecuador.

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The Tigrillo in Zaruma

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Why Cuenca is Seriously Overrated

Opps.

I let the cat out the bag on this one.

Don’t get me wrong.

I like Cuenca. It’s a nice place that’s attracting a lot of expats.

But…the world’s top retirement destination?

Child, please.

Are you outta your freakin’ mind?

It’s not even the top destination for retirees in Ecuador.

It was obviously chosen by people who’ve visited maybe a couple spots in Ecuador and who are interested in primarily selling seminars.

Let’s examine Cuenca further:

Climate: Forget eternal spring, I’d call Cuenca weather more like “eternal late fall”. It’s chilly, especially at night with lows in the mid 40s F, yet its just warm enough so that most dwellings don’t have heat, making many places indoors downright …cold! And it rains a lot too, and it’s more humid than the high elevation (8400 ft above sea level) would predict.

Cost of living/ Real estate: Yes, food is cheap like all over Ecuador with multi-course lunches starting around $2, taxi rides start at $1-3, bus rides $.25, 2 bedroom condo rentals start around $250/month, BUT due to several factors real estate in Cuenca is notably more expensive than most other places in Ecuador.

Food: Whenever “guinea pig” is a local staple, you know you’re in trouble. Hands down the variety of seafood and even the BBQ meats on the coast of Ecuador beat the local eats in Cuenca… any day of the week!

Local people: The local “Cuencanos” are friendly to foreigners, no doubt about it, but with so many foreigners around, most locals are de-sensitized and are really quite neutral to the sight of a foreigner. Being a foreigner alone won’t win you any brownie points like it does in other areas of Ecuador and the world where foreigners are a rare sight. But at least foreigners aren’t frowned upon. Ecuadorians as a whole are friendly, laid back people.

Old town/ Spanish colonial architecture: The Cuenca old town is OK, but it can’t compete when compared to the old towns I’ve seen in Cartagena (CO), Guanajuanto (MX), Colonia (Uruguay), Santo Domingo (DR), or even Quito.

Health care: Its a bit more pricey than the healthcare service in nearby Loja, and the variety of services offered is better in Guayaquil or Quito.

For singles: For single guys, its hard to beat Guayaquil, it just is, trust me on that one. For single women (and gay men), I’ve heard Manta, Guayaquil and Machala have some of the countries best looking and most enjoyable men.

Crime: While notably more safe than the other two big cities in Ecuador (Quito and Guayaquil), it’s still not quite as safe as the smaller towns in Ecuador if this is really important to you. Remember Ecuador outlaws guns so gun violence is a rare sight anywhere.

Cultural events/nightlife: For cultural events like classic music concerts and plays, Loja beats Cuenca. But if I got the chance, I’d trade both for Le Reve Vegas show tickets. For pure raucous nightlife, Quito and Guayaquil beat Cuenca once again any day of the week.

Expat community: If you’d like to be around a lot of other expats, Cuenca has built the largest expat community in Ecuador (rumored to be between 3-5,000 permanent residents) but there are also significant expat communities in Salinas, Manta, Cotacachi and Quito. But none are yet to the levels of hot spots in Mexico like in San Miguel.

Business opportunity: For businesses focused on selling products or services to expats it’s hard to beat Cuenca due to the large flow currently coming to the area on a daily basis, heck, I might even put a business there soon, but overall, coastal Ecuadorians are known to be more “free-spenders” than their highland counterparts and boy does the coast still need about, well… everything.

Overall: Unless you’re looking for a larger, established expat scene, Cuenca can easily be beat in all the categories listed above by other spots in Ecuador.

It’s overrated.

In fact, in my next letter I’ll share one unknown, alternative destination in Ecuador that has most of the benefits Cuenca has but with a true warmer-yet-not-too-warm eternal-spring like climate. To get it sign up for my list below, you can unsubscribe at any time:

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Consumer Price Index of Ecuador entering 2013

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Parque Machalilla near Puerto Lopez, Ecuador.

At the start of 2013 it was reported by the INEC (Instituto Nacional de Estadisticas y Censo) that the consumer price index in Ecuador was at $595.70 (per month) compared to $578.04 at the end of 2011.

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