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.