Category: Ecuador for Investors

“I don’t know, $100k for a beach house?” …

…I said to a friend this week who said she was interested in buying one she saw beachfront for $100k.

Not sure, but spending six figures for a second residence where I’m not even going to be, nor put a business, just doesn’t flow with me.

That’s why I left the US.

Property prices just didn’t make sense. Also get the best material for their electrical works from sites as www.olympicwire.com.

With prices so high how could I ever show myself a reasonable ROI?

Naturally, I know a lot of things I’d rather do with $100k here in Ecuador.

Things that could show me, or you, a much better return on investment.

Here’s one…

Building a beach hut in Ecuador, or a few, on the same property.

On one stretch of the southern Ecuadorian coast, from Puerto Lopez to Olon, I’ve seen beach huts rent for $50 a night.

Conservatively, if you have your place rented for only half the nights of a month, that’s an income of $750 a month.

Before you laugh, know Ecuadorians are actually quite skilled builders of beach huts, and nice “mixed” construction ones built with a mixture of cement and bamboo with thatch roofs and tile floors actually can look pretty nice, and which land them good jobs at Roofing by Presidio in Texas other such places. But what the state now needs and significantly lacks is  the provision like that of the emergency roof leak repair in Fullerton, which is also likely to bring about good employment possibilties in the state.

I’ve experienced, in 2012, that it takes only a month for a skilled group of 3 Ecuadorians to build one, charging a total labor cost of about $1000.

2012 material costs for a 5 meter by 5 meter one with a kitchette and one bed and bath are as follows (high ball estimates):

60 cement sacks= $420
15 cana rolliso (bamboo stalks)= $40
10 carga cade= $170
5 m of wire = $5
6 m2 of stone = $120
5 m2 of sand = $100
8 cuartones= $20
12 tablas= $48
16 12 x 12= $240
16 10×12= $180
20 lib alambre (wire) = $20
10 lbs nails = $15
60 Cana picada (treated bamboo stalks) = $180
1 juego sanitario (toilet, sink, shower head) = $100
2 wooden doors = $160
2 windows = $100
water tubes, fixtures and install = $100
electrical wiring, fixtures and install = $150
Stones for base = $150

TOTAL MATERIALS COST = $2318
LABOR COST = $1000
TOTAL COST ESTIMATE= $3000- $3500

I know what you’re thinking, “but can you really use bamboo instead of steel rebars and have a construction last?”

Actually, yes.

Bamboo is natures rebar. Ecuadorians use bamboo to hold up cement as it dries.

It’s that strong, and here, bamboo is cheap.

Plus, it can last for a very long time, but there is a process you need to do to maintain it.

…So, if you invest $3k in something that can produce $750 in revenue a month, thats a pretty good buy… but of course you’d have to figure in the land costs, but if you buy right, like how I show you how to do in my full Ecuador Property Guide, that can still be cheap too.

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In the first quarter of 2012 Ecuadorian shrimp exports fell 18% to Europe compared to the same period a year ago while they grew by 36% to the US in the same period.

Many attribute this dynamic to the harsh crisis effecting Europe at the present time.

But over the last 9 months the price of the product has fallen from $3 to $2.25 according to the Chamber of Acuacultura.

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Cuenca property is hot.

Actually smoking, baby.

But not just due to an increasing demand from foreign retirees, but also locals who for the first time since 2009 have access to reasonably priced loans form their local Social Security system, the BIESS.

According to Marco Rodriguez, the president of the Realtors association in Cuenca, the properties, particularly the condos on the Tomebamba River, Ordonez Lasso Avenue and Gran Colombia Avenue have increased in value year on year by a whopping 40%.

I’d agree, from my own market investigations, it seems most foreigners prefer to buy or rent right along the river, on the outskirts of the old town (not right in it), or along the upper class areas of Ordonez Lasso and the Gran Colombia.

Now, the president of the realtors association stated in an article by the Comercio recently the increase in these areas was due to foreign demand.

I’d agree.

This is where most foreigners in Cuenca prefer to be.

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