What pays in Ecuador and what don’t

“I’d love to offer my marketing service to Ecuador businesses, but what would they pay me?” A friend told me recently over a coffee in Ecuador.

He was right.

Did Ecuadorian businesses need his service, just like businesses in the US do?

Yes.

But were they willing to pay him what the service is worth?

No.

After a year and a half in Ecuador, I feel like I got a bird’s eye view of this s-h-i-t.

Like in most ‘third world’ countries, in order to make money in Ecuador you have to sell a product.

Your own product.

So stop thinking like an American, or someone from a service-based economy, and stop trying to sell services.

I mean…

Don’t start a travel agency… build your own specialty tour and sell it through the travel agencies.

Don’t become a real estate agent… flip your own properties.

Don’t become an ESL English teacher (it doesn’t pay like it does in Asia)… start your own English school.

Don’t offer a service to exporters… export something.

Don’t be a financial advisor… sell shares of your own niche investment fund.

Don’t offer your service as an electrician, plumber or builder… start your own specialty lighting business.

Don’t offer your service as a professional video editor… make your own videos.

Don’t look for someone else to hire you (employees start out making $318USD a month)… start your own business.

I can’t stress this enough, you need your own ‘thang’.

My first few months in Ecuador I spun my wheels trying to sell a marketing service to Ecuador businesses, I learned the hard way, now you don’t have to.

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How to Buy your Residency Visa in Ecuador on the Cheap

Man, I wish someone would have told me this a year and a half ago.

Really, sometimes info is worth money.

The door to Ecuador residency really is wider open than it even seems to be.

Now, the easiest way to get a resident visa in Ecuador is to prove you have a pension of over $800/month.

But what if you don’t have a pension?

Then you have to buy your way in with an investor’s visa.

But it’s actually cheaper than advertised.

Sure, you can lock up $25k or more in a one year CD which than qualifies you if you trust Ecuador’s banks.

Or…

You can buy a property municipally valued over $25k.

Here’s where it gets interesting…

You don’t actually have to pay $25k.

Or scowl the earth in Ecuador looking for a property that is municipally valued over $25k, many properties, although worth well over $25k are municipally valued far under that.

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How Will the New Airport Effect the City of Quito?

 

The new airport scheduled to open February 20 will have profound effects on the city of Quito.

Skyscapers will now be allowed to be built higher, which could drive already high (for Ecuador) property prices downward.  The area around the current airport will probably wither on the vine, it already is a seedy area that will not get any better now that the legit airport-related businesses will be on their way out.

Many travelers whose final destination is somewhere in Ecuador other than Quito will probably opt to go through now more convenient Guayaquil or not bother to pass through the city of Quito at all scheduling their connecting flights back to back to their international arrivals.

The short Quito-Guayaquil flight is the most trafficked route in all of South America, but may not be any longer as more people will choose not to travel as often or use the bus considering the increase in travel times.

The area of the current airport will  be converted into a park, convention center and several large roads servicing the different areas of Quito.

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Banking it with Wedding Rentals in Ecuador

“They paid …how… much?” …

… I said earlier this week while visiting a wedding on a hacienda (small country home) outside of Quito.

“$1500, just for the day.” The owner of the hacienda told me.

“Damn.” I responded, “and they don’t even sleep here.”

It’s true, from my time in Ecuador I’ve noticed no matter how much or how little Ecuadorians make, they spend BIG money on three things…

Clothes.

Beer.

And weddings (Often over $10-12k).

Big money.

And weddings are a commonly overlooked rental opportunity here in Ecuador.

Where I’m at now, just outside of Quito, as I check in from my smart phone, the haciendas charge anywhere from $8-12 per person charging for a minimum of 100 people.  (That’s $800-1200 minimum daily rate for the hacienda owner.)

For even larger wedding receptions with up to 400 people, which are common in Ecuador, most haciendas will charge a flat daily rate usually around $1500-2500. I should say that the biggest reception I have ever attended was at the reception barn at Mint Springs Farm. There was around 200 people and I thought that was too many guests.

The only costs to the hacienda owner (you) are what you’ll need to pay to a guard for the day (around $20) who helps park the cars and a dry cleaning service that takes care wedding dress and suit (around $20 for the job). One place I know of in Monterey, California, called Gatherings, has just the ambiance I’m talking about. Check out some of the pictures of their Boutique Venue by Googling a unique event venue in Monterey — see the ambiance I’m talking about? There is a piano, chandeliers, two fireplaces, an outdoor deck area, antique furniture, beautiful draperies and more. You would never be able to afford decorating the local hall, hotel or restaurant banquet room to this degree — well, at least I personally couldn’t afford to. And the feeling these facilities give your guests is extra special – it’s warm, cozy, inviting and family-oriented (home-like). You can even choose between four fonts and if you’d rather have a colored or white background, if  you want to learn more about the best invitations and other wedding preparations you can visit www.modernmoh.com online. Now, a Victorian home such is Gatherings may not be your cup of tea, but all-inclusive, or Boutique, wedding reception venues are made up of many different styles from contemporary and urban to sexy and flamboyant. Just do your research in the city you plan to get married. In your browser, just type in all inclusive wedding venue in The Enchanted Valley Barn. Some of these venues take care of every little detail including photographer and florists, and others include mainly what I listed above, but I know that if you were to go and hire each of these vendors individually and add them all up, it would equal quite a bit more than the package price you will get at an All-Inclusive Wedding Reception Venue or Boutique Wedding Reception Venue. Check here learn more about wedding limousine services. Depending on the time of year, many all-inclusive wedding reception venues run promotions. You may find that for an off season date they offer a discounted rate or include a free wedding cake, an extra appetizer, or a free bartender. You can check here the list of wedding planners. Remember to ask them if the date of your wedding falls within one of these off season times that they may have some specials for. And if these venues don’t fit for your ideal wedding reception, don’t forget them as possibilities for your Rehearsal Dinner or Engagement Parties. You can check here about romantic Myrtle Beach weddings. Many of people prefer them over others.

It’s never been easier to arrange a celebration outdoors or in an unconventional venue. Nowadays, just about anything is transportable from foldaway tables to portaloos to kitchen equipment. So if you have been dreaming about hosting an anniversary, birthday celebration or wedding therein perfect location within the middle of nowhere, hesitate not . With a touch of effort and tons of investment (unfortunately, this stuff don’t come cheap… ) you’ll roll in the hay. If it is summer, you may need to server beverages cold, and probably you may also have to need a chiller for that. You’ll also have to pay for the cost of a generator installation for the day (DJs and weddings use a lot of electricity). This would all cost you alot, if you are hiring different company for arrangement. But with the help of the Chiller Rentals, you can find generator service, AC- chiller, Water Chiller all at one place.

Everything else is organized and paid for by the bride and groom or the wedding planner.

In order to rent your place like crazy, your hacienda needs to be at least 2000m2 in size and have plenty of space for the tents and have well-kept green grass.

It needs to be excellently gardened.

Have at least two outdoor bathrooms (the wedding guests won’t even use the house on your premise!)

And an attractive entry gate.

Plus have an electric generator.

And a small room with a mirror and couch where the bride and go and freshen up (like an actor’s room).

Additional extras that aren’t necessary but helpful include… a small wedding chapel, a small pool in the shape of a lake with a small bridge over it (the bride and groom will stand over it while the parents give speeches (a cheesy Ecuadorian tradition)).

In Ecuador, it’s common to get married in the church around 11am, then go to the reception around 1pm which usually lasts until about 8pm, but can go as late as 12 midnight.

Folks pay you the hacienda owner the daily rent and must leave by 12 midnight or pay extra.

Where’s best to have your hacienda for wedding rentals in Ecuador?

Keep in mind Ecuador has two main cultures.  The people on the coast live one way and the highland people have their own customs.

The same goes for weddings.

On the warmer coast, hacienda rentals is not much of an opportunity, because most folks prefer to get married in the church and have their receptions in air conditioned hotel ballrooms or on the beach with the best maintenance from dryer vent cleaning service online.

In the highlands, its common for folks to get married in the church, then go to a hacienda near the city but in the countryside for the reception.

By far, the most in demand area for hacienda wedding rentals are the valleys near Ecuadors capitol city, Quito.

Specifically the Cumbaya or Tumbaco areas.

How much is land going for in the Cumbaya area?

If you look like the locals lookin the way I describe in my full guide to housing hunting in Ecuador you can find haciendas going for around $70/m2.  Many go for more though and I’ve seen prices as high as $200/m2.

How do you promote your hacienda for wedding rentals once you have it?

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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.