New Quito Airport

New Quito Airport Receives First Flight

This is how a lot of the area around the new airport looks, dirt roads and all.

On July 2 the new international airport in Quito will receive its first ever flight. A test flight with real passengers on an American Airlines flight.

This marks one of the final tests needed to be done before opening the airport.

This is big news and could completely change the dynamic of the city of Quito.

Moving the airport out of town will allow for buildings in town to be raised higher, effecting the property market.

New areas of Quito will become popular hot spots, others will whither on the vine.

Anyway you look at it, it’s an opportunity for investors.

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Paraguay Ousts President, Effects on Ecuador?

Che Guevara, one of the most memorable rebels of the 20th century.

With a quick Parlimentary vote Paraguay just ousted their president over the weekend.

This would probably make big news in North America, but down here in South America, changing of the political guard is a common occurrence.

Chavez is ticked, just cut oil sales to Paraguay.

How will this effect Ecuador?

Well, it won’t effect it much, maybe just serve a reminder of how quick regimes can change down here.

Once a good friend and fellow international investor told me… “If you wait for these back-water countries to be politically stable before you visit or invest you will never go.”

It’s true.

Fact is, often most investors (and especially tourists) won’t even have any idea something big is going on. The effect on private property rights is the one biggie to keep an eye on and that right is rarely infringed upon as governments change wheels down here.

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Founder of WikiLeaks Seeks Asylum in Ecuador

Ecuador made the headlines this week around the world when WikiLeaks founder Julian Assange stepped into the Ecuadorean Embassy in London with hopes of the government granting him asylum.

This is big for Ecuador.

If Correa lets Assange in, will that open the flood gates for other wanted fugitives seeking refuge in Ecuador?

Would it hurt diplomatic relations with the US?

Probably. And that’s a risk tough to fathom when Ecuador sells one third of all it’s exports to the US.

Basically, if Ecuador wants to side with the rest of the super powers on this one, they’ll turn Assange in, if they wish to go against the international grain they’ll grant him asylum.

Would foreign investment in Ecuador be affected?

Yes. Foreigners may look at Ecuador as a riskier play, lowering the interest level.

We’ll see what happens and keep you informed on this one!

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How Locals Find the Cheapest Rentals in Ecuador

“I can’t believe the prices I’m seeing for rentals in Ecuador, hah, I thought Ecuador was cheap, most places are equal to or more expensive than similar properties for rent in Florida these days.” My friend from Florida recently told me in my B&B in Guayaquil.

“Well, how ya lookin’?” I inquired.

“You know, searches on the net.” He responded.

“Nope, no good.” I said.

“On the net, especially in English, is where you’ll find the most expensive stuff out there in Ecuador. A lot of people publish their properties at often for-rich-foreigner prices hoping to land a wealthy renter unaware of actual local market values.” I said.

In order to find “for-local” prices for rentals first forget the internet even exists.

Remember how you used to look for properties say 15 years ago.

And that’s how most locals in Ecuador still look for rentals today.

They start in the classifieds section of the local paper.

So, a great place to start to find the best local deals is in the classifieds of the primary paper in the area where you’d like to rent.

Once you’re on the ground in Ecuador.

Wait til you’re here.

Cause the local papers DON’T publish all their classifieds on their website.

Down here, a lot of business owners are still weary of the whole internet thang.

In Quito, check the El Comercio newspaper… in Cuenca, El Mercurio… in Guayaquil, El Universo.

Sunday is the best day to look.

Yes, you’ll need a bit of Spanish (or the help of someone who knows it) to look cause the ads have been placed in Spanish, by locals aimed at other locals…

…just how we like it, with most ads having legit market prices, you know, the houses and apartments for $250-300 a month kinda stuff.

Now, most property owners you find publishing their place in the paper require a 1 year lease.

And the place probably won’t be furnished.

So, if you’re looking for a furnished, short-term rental, grab your computer, the net is probably a good, more time-efficient choice.

As to how to find the cheapest deals when buying property in Ecuador, sign up for my Weekly Ecuador Insider´s Newsletter to find out now, you can unsubscribe at any time:

8 Risks to Colonial Restoration in Ecuador

This week the NY Times released an interesting article on colonial restoration in Cuenca.

The idea is basically taking an old Spanish colonial building, reworking the interior and selling it off in pieces as individual apartments.

And it’s a great opportunity in Ecuador.

For instance, the article stated the buyer paid $148k for an apartment in the colonial house… and I personally know you can find entire old colonial houses in the old town of Cuenca right now in June of 2012 starting around $120k. So if you buy the colonial, and splice it out into 4 or even 6 separate apartments and resell each one, it could be quite profitable.

But before you dive into this head over feet, there’s a few things you should know, risks to keep in mind… things I’ve learned on the ground and heard from several folks in this business, including the developer mentioned in the NY Times article, Juan, who I’ve known for several years now.

1. The Municipal is key! The Municipal in Cuenca will ultimately approve or nix your project from the get go, and you have to respect their decision, because ultimately they’re the ones who will, or will not, issue the separate titles to the units located in your colonial. Have patience, dealing with Municipals in Ecuador can be a very time consuming and frustrating process (plan on months, several months to hear back from them once your plans are submitted). Contacts help. Ideally its best to check on the feasibility of your idea with them before you buy the house in the first place.

2. Mind the structure. Even if you get approved for your project the city is very strict about protecting the overall aestetics of the old town and even if the house is about to fall down you wont be able to change much with regards to the exterior, so know and check that before you buy!

3. Clear title? Even if you’re an experienced Ecuador property trader you’ll still want to hire a lawyer to check on the title and domain history of the property because titles for homes in the old town can go back literally centuries so it’s best to be sure the title is free and clear before you buy a place. Titles particularly get mucky after deaths or divorces.

4. Keep your market in mind. Your main market will be foreigners, no doubt. Ecuadorians don’t really “aspire” for places in the old town, they don’t value the historical beauty like we, foreigners, do. So keep your market’s tastes in mind. Offer balconies, green areas (for pets), good lighting, nice views (if possible), and American style kitchens. People rent old, they buy new. That’s why a modern look in an old colonial shell is a real winner.

5. Consider the fringes. For most foreigners and tourists, the old town in Cuenca is the place to be… for a few days… but to live most prefer living just outside of it in nearby areas. The old town does have a lot of noise, honking, traffic, uneven sidewalks and smog. For this, the outskirts of the old town just may be the place to be if selling residences.

6. Cuenca’s “in” now, but will it soon be “out”? The highlands of Ecuador actually boasts several marvelous old colonial towns, a few of my favorites are in Quito, Loja and Ibarra. But there’s more, I’ll mention them on newsletters to come. Cuenca is the top draw now, but that could change overnight, in the other places you may be able to find a better buy. Worth a look!

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