What do we do now?

by | Sep 25, 2001 | Archives

The current economic crisis has created two sad financial facts that can really hurt.

Really low interest rates and inflation are two economic combinations that hurt anyone living on a fixed and or interest income. What can we do when our cost of living rises and income falls?

One answer is to live in a less expensive place. This may be why I have noticed a large number of readers asking about living in Ecuador.The information below show why this may make even more sense now.

The first is an Economist article that shows how Ecuador's economy is now the fastest growing in South America.

The second is a note comes from eClub member Mark Burris who is living in Ecuador now.

	"hola gary:		I have just returned from a 3 day business trip to manta, and wanted 	to give you & your readers the latest update.		Construction of the new airport/and joint useage military base is 	nearing completion. originally scheduled to open october 1st, it now 	appears there will be a slight day with a new anticipated opening date 	of october 22nd-november 1st.		Construction of base housing for the north americans continues at a 	rapid pace for the approximately 420 american military men returning 	in October.		The construction of the 400 room Sheraton Hotel, the largest in all of 	Ecuador is still ongoing.		Howard Johnson has started construction of a new 6.6 million dollar, 	120 room hotel in Manta, near the Oro Verde Hotel.		It is being discussed but has not been verified to date that 5 more 	hotel/motel chains are considering investment purchases in the 	immediate base area for future development. (I have a new property for 	sale of 3 hectares or 7.4 acres within 2 blocks of the base fenceline 	if anyone is interested)		A large and new Supermaxi grocery store( a chain comparable to most in 	the states (in size and quality) is tenatively scheduled to open in 1 	week, after several months of construction,across the street from the 	Oro Verde Hotel.		Cocco restaurant is building a large restaurant which will have an 	international cuisine that is also near the Oro Verde hotel and has an 	estimated completion time of 3 months.		Continental airlines has opened a new office in Manta. it is believed, 	but has not yet been verified that they are following in American 	Airlines footsteps in anticipation of providing direct service from 	Miami to Manta starting in november according to local travel agency 	sources.		There are several signs in Manta and the surrounding cities of land 	being cleared for new homes construction. locals advise that this is 	to accomodate the high interest in the area by both ecuadorians and 	foreign interest, primarily from the United States and Canada.		Jorge Loor of Crucita  reports (4) new sales of lots in Crucita at 	$19,000 each, all sold to North Americans. the owners of the project 	in Crucita are continuing to develop at a good pace.  Some of the 	owners of the property I have listed on my website at: 	http://mantarealestate.com/  (manta/coastal button) have now agreed to 	divide some of the land they own in Manta, Puerto Cayo and Monte 	Christi into sections as little as (20) sq. meters x 30 sq. meters 	(215.2) sq. feet x (322.9) sq. feet which is plenty of room for a 	single family home, or as a investment for the future.  At the lowest 	price listed on my website for property  in Monte Christi, persons can 	now 	buy property for as little as $3600.     Mark"

One of the recent problems I have had with Manta is that prices have risen very much since I began taking investors to this area. For example many delegates that came with me three and four years ago bought the same lots Mark mentioned above (now selling at $19,000) for $3,000 and $4,000!

There is a chance that the recent down turn in travel will create a short term crash again in real estate prices. With this in mind Merri and I will conduct an “International Business Made EZ” course and link it to an Ecuador real estate tour in January this year.

Until next message, good global investing and business.