Ecuador Real Estate Gains from Dashed Hopes

by | Dec 9, 2006 | Archives

Ecuador real estate may offer better value now because there is fear that the new president elect will confiscate property. This creates better value in Ecuador real estate. This November picture (at La Mirage Spa) of Merri and me with our last group in Ecuador is one more reason why we believe that Ecuador real estate prices will remain strong.

La Mirage Spa is typical of Ecuador. Beautiful real estate offering better than five star service at prices almost anyone can afford…genuine, real authentic caring not artificial pacification and smiles. These factors are why I like Ecuador as a place to invest and live.

This does not mean one should invest everything (or anywhere near it) in just Ecuador or any one place. In fact we believe in shorting the US dollar and those who plan to spend time in Ecuador can have a double profit. Live in Ecuador, own Ecuador real estate and short the US dollar.

International Investments – Up 15.93% in a Month

Here is an added thought about how to enjoy Ecuador.

I just sent the subscribers of my Borrow Low-Deposit High educational service their latest update that said of the US dollar short portfolio we are tracking:

“This portfolio has jumped up + 9.09% since November 1, 2006. That’s an annual rate of increase at 109.08%! This is incredible for such a broadly based, safety oriented portfolio.

All but one (again Mexican peso) of the 17 investments (with accrued interest) are in profit. Almost all of that profit comes from the drop of the US dollar.

This portfolio also has some extra inherent strength. Both the Turkish Lira and Icelandic kroner have devalued versus the dollar in this last month, but their high interest rates have kept them in the black. These currencies have devalued horribly over the past year so their drop is likely to stop or slow. If there is no more drop in the parity of these two currencies, their high earnings will enhance this portfolio’s return in months to come.

This is what the traditional multi currency sandwich is about…getting a higher return for taking a currency risk. If you spot the correct currency trend you win and depending on the leverage you use your winnings can be huge.”

Live full or part time in dollar oriented Ecuador and short the US dollar. This can be a powerful combination that helps enjoy the lifestyle that many North Americans had expected but can no longer have because of high costs in insurance, tax, food, gas, prescriptions, housing and medical care.

Interestingly enough the nearly 10% rise in the dollar short portfolio was not the highest. We are tickled to announce that our Green portfolio has risen 15.93% since November 1, 2006. That’s growth at a 191.16% annual rate. You can learn why in a sixteen page email report about how 13 economic forces now clash to shape investments markets ahead that shows the rewards and the risks. The report also outlines the five new Multi-Currency Portfolios we are tracking in our Borrow Low-Deposit High Multi-Currency Sandwich Educational Service. You get this report FREE when enroll in our Borrow Low-Deposit High Multi-Currency Sandwich Educational Service. Details are at

Ecuador Real Estate Gains from Dashed Hopes

There is fear of a new leftist government in Ecuador but we doubt very much that the new administration will do anything to confiscate land from individuals. The fear then is fear itself. If investors perceive that the new president will put property rights at risk this could cause overseas investors to withdraw and money to flee the country.

I think North Americans will come to Ecuador anyway because of dashed hopes.

The worst thing on earth may be dashed hopes. People have shown that they can live and even find joy in the gravest of circumstances. They can survive and find purpose in starvation, cold, loss, death. Mankind is amazingly resilient and tough when facing even the worst circumstances.

Winston Churchill understood this when he became Prime Minister and told Parliament, “I have nothing to offer but blood, toil, tears and sweat.” His leadership gave people hope but he said “Poor people, poor people. They trust me, and I can give them nothing but disaster for quite a long time.”

He understood the people could face almost any adversity if they believed in a reason for it.

Yet what societies cannot stand is dashed hopes or even worse broken promises. If you wish to be destroyed, gain people’s faith, raise their expectations and then dash their hopes.

This for example is an important reason why the Chinese government and other Asian nations support the US dollar (by investing in long term, low yielding US dollar bonds) even though they know these investments will erode their purchasing power.

Capitalism works. Communism does not. To hold China together the government had to open Pandora’s capitalistic box. The Chinese government lured their populace into a peaceful transition with hope. They created an environment for huge export businesses to the US. They gave the public the expectations of a better materialistic life. Now they dare not turn back! They must support the dollar versus the Yuan so that Chinese exported products remain inexpensive.

This is also a key reason why I believe that Ecuador real estate will rise. 50 million or more baby boomers in Canada and the US are about top retire. We boomers are the most spoiled consumers that have ever existed on the face of the earth since recorded history began. We were promised the world and it was given to us..until now.

Now as retirement comes, this group, as a consumer segment, is seeing dashed hopes for a comfortable retirement.

Fear like that found in this note from a reader could push Ecuador real estate prices down (and good value up). He wrote:

Dear Gary….If Correa is indeed left-leaning that could make him sympathetic to Hugo Chavez's way of thinking. And Correa's youth, inexperience and idealism could make him more easily “taken in” by Chavez. And we know Chavez has been trying to bring all leftist governments in Latin America into solidarity together with him as leader. The following was taken from VenEconomy (Venezuela's leading publisher in the economic and financial area).

“Hugo Chávez stated that those who voted for him in the last election, actually ‘voted for the Socialist project to build a profoundly different Venezuela.. Chávez's political objective is to obtain absolute power permanently. That is his similarity to Fidel Castro’. Venezuela seems to be living in a time tunnel. The Chávez administration has revived ideologies that had died a natural death, such as communism and Mao Tse-tung’s Great Leap Forward. Today in Venezuela there is again talk of barter and the Marxist theory of the value of labor.”

If Chavez really tries to do this, he will destroy himself and his dream. Perhaps Venezuela’s oil money will sustain him for awhile. But if his system is wrong (and it is) when the people he has promised to help see their hopes dashed. Adios!

Chavez may try and align Latin countries. He cannot do it. His approach is wrong. Do not misunderstand. There are plenty of inequalities everywhere in the world. People like Chavez can gain foot holds because many political systems are still full of corruption. This does not mean that Chavez and his distorted system is better.

Thus our belief is that current fears are oversold. At the worst President elect Correrea will give mostly lip service to his populist election promises. Whatever moves he makes should not affect overseas residents who have moved or invested small amounts there.

On the other hand our readers who come to Ecuador love the place!

Here is a note a reader just sent.

Hello Gary and Merri, I wanted to send a note to thank you for introducing me to Ecuador. I am sure you have heard all the superlatives before: charming, warm people, siempre verde, wonderful food, and extraordinarily cheap (except the airfare!). I wasn't sure quite what to expect, but I really enjoyed my time there. Like everyone, I fell in love with the architecture of Barro Viejo, I bought some leather (and nearly completed my Christmas shopping), and was curious about what the weather was like in the non rainy season.

I have traveled a fair amount internationally and I really enjoyed what I have come to think as the 3-D cultural fabric that I saw in Ecuador.

In Mexico and many of the other Latin American countries, everything seems a little bit two dimensional – flat and not as interesting.

In Ecuador everything seemed to have a third dimension: the wide variety of micro climates (Amazon, Galapagos, Beaches and Mountains), the guild system making every village a unique find, the indigenous people with more depth and a viable language (unlike Mayan or some others), and many different ways of life. It was just a richer and more fulfilling culture for me. Maybe it has something to do with being the middle of the world? Anyhow, I will go back to explore everything in greater detail, but I wanted to thank you for allowing me to share a portion of your life and your world. We will see you again sometime this year! Sincerely, Jim

Recently two readers from the cold part of North America were in the village (Cotacachi) to buy a home. They have worked hard all their lives, then the husband’s company went bankrupt and defaulted on his pension. They have to retire on less than $1,000 a month, barely enough to pay for heat, insurance utilities and tax in North America.

In Ecuador they can live very well on this. They can buy a three bedroom, 1200 square foot condo with this view for $49,000!

Enjoy real hardwood furnishings like this.

The armoire costs about $400. The desk not any more.

And enjoy exotic sights, tastes, smalls and sounds like this.

Up north their life would be dull, gray…barely subsistence.

They were sitting at tea with us and another reader at the hotel. The other reader was babbling on about Correrea’s left leaning politics and all the dangers and risks when the new buyer cut the conversation short. His comment was clear.

“You are worried about what might happen that is bad in Ecuador. I know with inflation what has happened that is bad up north!”

Unless there is a serious revolution in Ecuador (doubtful) or some huge new awakening in the US system, many North Americans will join us in Ecuador.

Ask yourself this. Which will people act on most in the long run? Here are pictures all taken at Little Horse Creek.

Where do you think people will be most likely to want to meet us in February? At our farm in North Carolina?

Or here in hacienda San Francisco (which is for sale by the way) a short distance from…


My bet is Ecuador will thrive because the sun always shines there. Life is exotic and sweet surrounded with wonderful people at a price that millions of North Americans can still afford to enjoy!

Until next message, may the sun always shine on you as well.


Get out of the cold, ice and snow. Join us this winter in Ecuador . We are headed south next week! Here is a schedule of the courses Merri and I will sponsor and or conduct.

Jan. 5 – 7, Fri.-Sun. Investing Beyond Logic, Vedic Astrology.

Jan. 22 – 26, Mon.- Fri. Self-Fulfilled: How to Be a Writer & Publisher.

Feb. 20 – 25, Tues.-Sun. Import-Export Course.

Mar. 9 – 15, Fri.-Thurs. Expanded Super Thinking + Spanish.

Mar. 16 -18, Fri.-Sun. International Business and Investing Made EZ.

Mar. 19 – 21, Mon.-Wed. Andes Extension & Real Estate Tour.