Ecuador is One of the World's Cheapest Places to Live On a Pensioner's Budget
Date: 08/27/2004Dear International Living Pioneer,
Sell your winter clothes…and prepare for the adventure of your lifetime in the Land of Eternal Spring.
Every cliché you've heard about living large on little…about settling into the lap of luxury on even a pensioner's budget…is true here.
This is one of the world's cheapest places to live. Take $250 out of the ATM Monday morning…and your expenses are covered for the week.
This place also hides some of the world's great real estate bargains and investment opportunities. How about a three-bedroom house on 2 acres on a river…with a guest house…for $34,000? Or a luxury apartment in a grand colonial building in the center of the historic district for $21,000?
Want to start a business? You've come to the right place. Few rules, little regulation…it's like Dodge City in the Old West. A lot of fortunes were made in the Old West…
Some countries offer low costs of living. Others hide good real estate buys…or attractive business opportunities. But, in two decades of looking, we've never found a country that offers all these things in abundance…plus perfect year-round weather.
I'm talking about Ecuador.
This is a country, as friend and Contributing Editor Gary Scott puts it, "ready to transform, poised to emerge."
A land of opportunity…where a middle class is forming. Ecuador is just waking from a long economic slumber…preparing to join the global economy.
We've been telling you about the attractions of life in Ecuador and the many opportunities this country hides for the past five years, since early days of dollarization spurred a time of crisis opportunity. The intervening years have seen good progress in this country…and even more and better business and investment opportunities.
It's hard to pinpoint the best reason for coming to Ecuador...but one thing's for sure: This is an affordable place to live.
You can employ full-time household help to cook and clean for $30 a week...enjoy a gourmet meal for two, with wine and dessert, for $25...get a haircut or take a taxi for $3...have your shoes shined for 30 cents...own a grand colonial mansion in the heart of Quito's old quarter for $150,000 or a three-bedroom home overlooking the ocean for just $85,000...pay just $600 in rent for a three-bedroom apartment in a chic neighborhood...
Indeed, for three years running, Ecuador won top honors in the Cost of Living category in our annual Quality of Life Index. This is among the cheapest places on earth.
Cheap...But Not Backward
Lots of places are cheap. But you wouldn't want to live in most of them. Ecuador offers a high quality of life, too. This is no isolated backwater.
And it's better every time we return. Most recently, the Quito airport has been improved dramatically--new jet ways, a totally renovated entrance, new waiting area, and huge vases of roses everywhere.
In Ecuador, you can live on little…and you can live very well. You can golf on breathtaking courses so free of crowds you never have to make a tee time. Indulge in a gourmet meal in a world-class restaurant. Why not? The cost is about what you'd pay for bottled water and an appetizer in a restaurant in Los Angeles, New York, or London. The fresh fruits and vegetables you find overpriced at specialty "organic" shops up north...sell here at the local markets for pennies.
And Ecuador is increasingly connected. Daily flights depart for destinations across the hemisphere. Cell phones are standard issue. Cyber-cafes are easy to find, and home-computer hookups are common. Cable TV gets you the major U.S. networks, CNN, three HBO channels, CineMax, TLC, and more (for less than $50 a month).
Safe...And On The Road To Economic Recovery
Before I go further, let me reassure you: Ecuador is a safe place to live and invest.
Crime isn't unheard-of. Petty theft, particularly in the big cities is an issue...as it is in all big cities. But a bolstered police force and greater attention to education have been brought to bear on the problem.
Ecuador is a peaceful country. The population is gentle. Even in the throes of a violent economic upheaval when the local currency careened downward, losing 67% of its value against the dollar in 1999, protests were peaceful. Nobody fired a single shot.
And economically speaking, Ecuador is walking smartly on the road to recovery. Back in 1999, the footing was less certain. The country had suffered everything short of a plague: a drought...then rains that washed away much of the country's infrastructure and crops...plummeting oil prices...near triple-digit inflation...failed banks...frozen assets...the collapse of Asian and Brazilian economies, which further hurt trade...and political deadlock, which made effective government reforms impossible.
In 2000, with its back against the wall, Ecuador implemented an economic program aimed at stabilizing the country. It replaced the sucre, the local currency with the U.S. dollar, and the congress managed to approve significant reforms in tax and Social Security law.
The situation has improved quite a bit in the years since. The GDP-growth-rate was at 5.4% in 2001...making Ecuador's one of the largest growing economies in South America. A new oil pipeline from Ecuador's eastern oil fields to the coast was complete in 2003 and it has doubled Ecuador's capacity to export oil. Inflation has plummeted and is expected to be in the single digits within the next two years.
Ecuador is an increasingly stable country...of unparalleled beauty and diversity.
Extraordinary Profit Opportunities
Local expatriates are involved in all kinds of business endeavors--import/export…small hotels…spas…restaurants…tour companies… One of the easiest businesses to get into in Ecuador is import-export. Done even on a small scale, buying merchandise in markets and shops overseas for resale back home can easily pay for your travel. Done on a larger scale, you could turn this kind of project into a steady income.
Ecuador's artisans are highly skilled. The markets are overflowing with handicrafts, jewelry, sweaters...all on sale for bargain prices. From turquoise, silver, and leather goods to statuary, fine alpaca apparel, and magnificent textiles, you'll find an endless selection of products you might export and resell for great profits.
But that is just one business option. The list of potential fields goes on--soft ecotourism, extreme sports, textile manufacturing and export, hospitality, real estate development, infrastructure provisioning for upcoming private telecommunications concessions, and much more.
In our new edition of Ecuador: The Owner's Manual, we devote a full chapter to current opportunities for the entrepreneur, outlining not only the sectors where you'll find the most promise, but also providing complete references and resources to help you launch your new business in whatever field interests you most.
Time For A Closer Look
For all these reasons and many others, it's time to take another close look. That's why we've compiled our experience and firsthand information into the most complete guide to Ecuador we've published…indeed the most comprehensive, current guide to this country available anywhere. In truth, to call it a "guide" is an understatement. This is nothing like Frommer's or Lonely Planet…not by any stretch.
This manual, literally years in the making, gives you everything you need to invest, travel, buy real estate, or retire in this Land of Good Living and Eternal Sunshine.
We've included contacts and how-to information in every chapter, filling this new edition of Ecuador: The Owner's Manual with the kind of firsthand, on-the-ground insights you can gather only when you live in a place. We've included step-by-step guidelines and how-to's for every section...the useful things you won't find in a run-of-the-mill guidebook or an embassy's country report--the subtleties of the visa rules...the best hotels in our favorite locales...the name and number for our favorite driver and guide (he knows his way around everywhere)…how to find a real estate agent you can trust…and an attorney…plus details on:
How To Invest In Places That Promise
The Best Lifestyle...And The Highest Returns
* Whether it's a mountain view or a beachside hideaway you're looking for, we'll pass along the names, phone numbers, and e-mail addresses for the contacts we've found most trustworthy and helpful in each of our favorite destinations.
* If you're coming here to settle, you'll need a place to live. We'll tell you what, exactly, you can expect to pay in fees when you buy property in Ecuador...don't worry, it's seldom more than $1,000. And we'll explain how everything is calculated so there won't be any surprises.
* How to find an attorney who can arrange everything from residency...to your home purchase...to setting up a business. We recommend three honest, efficient, and affordable lawyers you can be sure will take care of every detail and make navigating the bureaucracy a breeze.
* Firsthand tales from the field stories from people who have already done what you're thinking about doing. Their hard-won advice from hacienda owners, shrimp-farm proprietors, tour operators, and resident retirees will save you time, money, and hours (maybe even weeks) of frustration...
* Nine steps to buying property in Ecuador. We've spelled out in plain English exactly what you can expect when you buy...with notes about each step that gives you the inside, "we did it, and here's what you need to watch out for" story.
The Practical Know-How For Living In Ecuador
* Complete details about residency and citizenship, learn which of the six visas is right for you...plus how you get it, including sample forms so you'll see exactly what you'll need to fill out.
* How much it really costs to live here. You'll find a sample monthly budget for a couple living in Quito on $1,595 per month and for another living in less-expensive Cuenca on a mere $700 per month, plus notes about what things cost, from cable TV to dentures.
* What you should bring. Whether you're traveling for a week or six months, we've included our list of eight things you don't want to be without.
* What it costs to use a phone...hire a maid, employ a gardener, visit a doctor or dentist...and much more.
* Where to find the best medical and dental care and how much you can expect to pay to have your shoulder repaired or your teeth cleaned.
* How to get full-coverage health insurance in Ecuador for $111.94 per month (for a couple), including 100% hospitalization benefits, 60% paid prescriptions, and visits to doctors and clinics for $5-$6, among other benefits.
* How to get your pet to Ecuador it's easy. But you'll need to start the paperwork a few weeks before you go. Learn what to do first, what you'll want to have with you when you travel, and the key person to speak with if you bring your pet back to the States.
* How to pay no taxes on your household goods...including brand-new appliances...and some firsthand advice about what to bring and what to leave at home if you're moving here full-time.
Traveler's Tips You Can't Afford To Ignore:
Luxury Hotels At Boarding House Prices...A Smart Shopper's Handbook...And More
* One of the very first resorts in Ecuador to cater to ecologically minded travelers is still, arguably, the best place in the country to go bird watching. We'll tell you where it is and how to book a stay for as little as $60 a night.
Where to find leather handbags...shoes and jackets...ponchos...hats...mittens... blankets...silver jewelry with lapis and turquoise...painted balsa wood birds... handmade flutes...and more. You'll learn where the best markets are, the best days to go...and the smartest way to negotiate.
* A world-class spa resort at one-third what you'd pay for a comparable experience in Europe. Five-star meals. Gardens filled with flowers and hummingbirds. Spa treatments so divine you'll never resist a return visit.
* The village where you should buy an original Panama Hat (it's a misnomer...they come from Ecuador). Here you get them straight from the families who weave them in their homes.
* Three bargain hotels in Quito you won't read about in the guide books...and two more upscale places in town to lay your head, both of which offer extraordinary value for your dollar. Think $200-a-night room...yours for $50.
* The best places to overnight in the Vilcabamba Valley the Valley of Longevity. One insider's pick costs just $8 a night. An American breakfast in the morning? $2.
* Get a taste of the Galapagos for one-tenth the price. This little island we'll tell you about is inhabited by albatrosses, boobies, and other rare birds. Eleven species of whales come to court in these waters each year, and you can see them between June and October. We'll tell you where to stay...and the best month to go.
* A hotel in the shadow of Ecuador's highest peak, really a country ranch with a roaring fireplace, steam baths, horseback riding, and white-water rafting...where you can stay overnight for about $55 a couple. Oh, and that includes three sumptuous meals.
Business Opportunities Detailed
* From auto parts to snack food...there's a market for U.S. goods and services in Ecuador. Find out which four sectors show the most potential, and our take on how you might best position yourself to profit.
* The names and contact information for 13 excellent resources to can help you launch your business in Ecuador.
* The web address for our favorite on-line site about investing in Ecuador the more than 100 links posted there will prove invaluable, saving your time, energy, and frustration.
Think Of Us As Your Own Private Consultants...
You'll find on the shelves in Barnes & Noble a short stack of guidebooks about traveling through Ecuador...and an on-line search invariably produces hundreds of websites with Ecuador content.
None of this compares with this new edition of Ecuador: The Owner's Manual. This is not a guide for a general audience. It's designed to help you focus your search for the right place in the world to live and invest…and, specifically, to introduce you, in full detail, to all the reasons Ecuador should be at the top of your list.
It's like having a consultant walk you through your options and offer you advice. Only instead of paying somebody hundreds, even thousands of dollars for his time and expertise, you get the benefit of our collective experience and know-how, earned over more than two decades researching the world's top havens, for the price of a modest meal out.
International Living has been writing about Ecuador for nearly a decade now and over the years has developed an extensive network of local contacts. We've been to the places covered in this newest, expanded edition of Ecuador: The Owner's Manual again and again, noting changes, finding new advantages. We've long championed this country, never more enthusiastically than when economic crisis scared off so many other investors.
We have a history here. And that gives us a competitive advantage. The truth is, our team is uniquely situated to give you insider advice…for example:
* Our Rolodex of contacts--the names, phone numbers, emails, and fax numbers for every one of the people and resources we've found helpful (and trustworthy) over our years in this market.
* First-person accounts from people who have already invested in or moved to Ecuador. It's the next-best-thing to chatting with these folks face-to-face. They'll tell you why they chose this country...what they most like (and dislike) about it...and what they wish they'd known before they jumped in. We've included their contact information as well, so if you do want to talk to them in person, you'll know how to arrange a meeting.
* Detailed, step-by-step guides to buying property, getting residency, and launching a business, for instance including an outline of what to expect and what to watch out for.
* A full description of the areas in Ecuador where you'll find the best opportunities for an affordable lifestyle...profitable investment...warm-weather escape...and cool-weather living...in other words: the places we think have the most to offer you in terms of value investing and quality of life--specifically, Quito, Cuenca, Vilcabamba, and beyond...
Get In Now...And Beat The Crowds
Your timing is good. Now is a smart time to gain a foothold in Ecuador...before the rest of the world catches on to what a wonderland this is. Like Costa Rica and Mexico before it, Ecuador will attract a growing number of foreign retirees in the years to come.
And like the folks who invested early in those other countries (and who have watched their properties appreciate in value as much as 10-fold)...an investment in Ecuador now could leave you well-positioned to profit in the years ahead.
Baby Boomers are approaching retirement at a time when the U.S. economy is sluggish, the bear market has pummeled their investment portfolios, and retirement pensions are no longer a sure thing. They face greater financial pressures in retirement than their parents did. And in greater numbers than ever, they are seeking alternatives to a retirement of merely scraping by in the U.S.
Ecuador will make...already makes...an ideal escape from America.
As expatriate Chuck Brown put it:
"I retired here in 1996 for many well-considered reasons--including low to no taxes...a non-invasive government...a pleasant, non-violent environment…plus a very low cost of living. I enjoy a good lifestyle on $700 a month. For this semi-retiree of 56 years, Ecuador offers exactly what I was looking for."
Here, here. We think you'll agree.
Sincerely,
Kathleen Peddicord
Publisher, International Living
P.S. One of the most compelling reasons to go to Ecuador right now is global inflation of property values. We are experiencing a global population explosion. More and more people…but the same amount of land. The cost of coastal real estate, especially, is skyrocketing.
In the last two decades, the U.S. has experienced the biggest migration of mankind ever. People moving to the coasts. Now one in six Americans lives in a county that is on the Atlantic, the Pacific, or the Gulf of Mexico. This is pushing coastal real estate prices beyond many people's budgets and making it harder and harder to invest for good return. Yet Ecuador coastal real estate prices are still affordable. In this country, you can invest in a beautiful coastal house for less than $50,000. Where else within four hours of the U.S. is this true?
P.P.S. When you order your copy of this new edition of Ecuador: The Owner's Manual, you'll also receive, FREE, a copy of a limited-edition special report we've just created on this country's most enchanted valley, a place high up in the Andes where warm sun-drenched days give way to cool star-filled nights…spring and youth reign eternal…and the cost of living is just pennies on the dollar…
Of all the places in Ecuador we take readers on our Global Wealth Tours, this is the spot that most captures their imaginations and their souls. More International Living readers have settled in this magical valley than anyplace else in the country.
Right now, for example, in this beautiful valley, you can buy a 3-bedroom home with spectacular views of the surrounding mountains on 2 acres of land for just $34,000…
You can stay in a charming hotel that sits on 7 acres of lush tropical vegetation…and boasts a pool, a hot tub, a poolside bar, fireplaces, and stunning views across the valley…for just $20 a night (including breakfast and dinner)…
Enjoy world-class cuisine for as little as $7 a person at the many excellent restaurants that dot the village and the surrounding hills…great seafood…superb vegetarian…intriguing local specialties…
Sit on a terrace with views of the brooding mountains above sipping a beer that cost you just 80 cents…
Pay property taxes of as little as $7.50 a year…
Trek the hills and cloud forests on horseback. You'll ride through secret worlds of giant trees and hidden streams…through jungled ravines and open fields. (A 3-hour ride will set you back a mere $10.)
In our new special report, Live like Royalty in the Real Shangri-La, FREE with your copy of the new edition of Ecuador: The Owner's Manual, you'll be introduced to this special Valley of Longevity, where residents live long, healthy, happy lives. Many readers, seeing it for the first time, are so smitten...they decide on the spot to stay. Maybe this is the haven you've been looking for, too…a place of beauty, opportunity, and adventure…
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