I have worried about accelerating real estate prices in Ecuador. Here is some information you should know.
A recent message shared Rolf Stern's assessment of Ecuador's economy and how real estate prices should rise here. Then Merri and I missed on our offer for Hacienda San Miguel. We offered 30% under asking price (two years ago we would have offered 50% below asking price). An Ecuadorian bought it for $5,000 over asking price! Are all the bargains gone I asked? I started looking again. Then I received this message from eclub advisor Andres Cordova.
Yesterday's El Comercio newspaper, Ecuador's leading and most renowned news source, published an article in page B3 about real estate prices in Latin America. I was glad to note that, although prices have come up considerably in Ecuador in recent times, Ecuador (Quito) ranks 9th out of 10 countries, with 1 being the most expensive and 10 the least. Check it out.
To highlight what this means, I checked out building prices with the architects Barro Viejo, an excellent firm who designed our house for our hacienda Rosas Pamba several years ago. Building costs then were $15 per square foot. Today they are $23. Much higher indeed, but this means you can still build a really stylish, well designed 2,000 square foot house for $46,000. Outstanding building lost are still available for $10,000. $56,000 for a beautiful new house is still cheap! We are starting a new house in North Carolina (same size) of a similar style and the estimates there are nearly six times this amount.
There is no getting around the fact that those who came to our real estate courses two and three years ago (and bought) picked up enormous bargains. But bargains are still here, harder to find and disappearing, but not quite yet. This may be the last year when prices will seem really low.
We can help those who attend our upcoming International Business Made EZ course March 22 through 23 inspect real estate while they are here. Let us know if you are coming and the types of property you want to see so we can set up a tour for you.
Until next message,