Ecuador real estate offers so much comfort for Merri and me that we are making a major commitment right now in Ecuador real estate.
Ecuador real estate is more us than shares and the first half of this message showed other reasons why last week I liquidated all my equity mutual funds and shifted into Swedish and Danish bonds instead. You can why at garyascott.com/international_investments/185.html
Ecuador real estate makes sense to us. We believe in Ecuador. Read again why we feel Ecuador has such incredible potential.
Imagine this. 60 million boomers will retire over the next 20 years. We boomers are the most spoiled group of consumers as a demographic class that has ever existed on earth. We were promised the world. We were given the world. Now the magic is about to disappear.
Assume that 10% of these will decide to move to less expensive countries. That’s 6 million people. Where is the most likely place to go? Eastern Europe offers great potential. Parts of Africa as well such as Ghana. Yet these are long distances from the US.
Canada is out…too expensive and too cold. Most people will head south.
Mexico stands to be #1, but prices there are rising quickly and there is a lot of anti-gringo sentiment. After all there have been numerous Mexican-American wars. The building of a fence across the border will not help either. Yet it’s still probably the place that will benefit the most due to location.
If Cuba reforms, it will be ripe and good as well. A great place to buy when you can assume no negative political circumstances. The low end Caribbean is also good except for those darn hurricanes that will put lots of people off…plus many water and transportation problems and the fact that few of the islands have a real infrastructure.
Panama is good…lots of English spoken, many yanks already there, but weather is lousy if you want to be in town (hot and humid) and prices are no longer low. Ditto for Costa Rica. Central America lacks infrastructure though there are some nice gringo settlements although they are expensive. Colombia is the first nation with a progressive economy and full infrastructure after Panama and Mexico. This could be a wonderful place but security will stop most from going there. If the security/drug/crime issues are resolved and image cleans up…go buy in Colombia. This will be a great opportunity.
However for now Ecuador, 3 hours and 45 minutes from the US will benefit as the first nation with a full infrastructure and really low cost of living. Argentina , especially Buenos Aries should do well also. It’s further away but BA has a very European feel.
If Ecuador gets just 10% of these 6 million Americans that leave the US , imagine what this means to this nation of 11 million. First this is more than a 5% increase in population. However look at what it means in dollars!
According to the CIA World Fact Book, Ecuador has a Gross Domestic Income of $4,300 per annum per person. That makes a total GDP of $47,300,000,000.
Imagine what happens if the 600,000 gringos have an average income of $18,000 a year per person. That adds $10,800,000,000. This is an annual income that almost equals 20% of the entire national GDP! This is one reason why Merri and I include Latin equities in our investment portfolio and are buying more and more real estate in Ecuador.
This is one reason we are buying more and more real estate in Ecuador.
We love and know this country. As we walk in the midst of winter down crisp warm Andean mornings or stroll by lamp light in safe village evenings watching the friendly people and families in the cool evening air, we really feel at home.
We have also always felt more comfortable investing in real estate than in equities.
Now we see the new President as an opportunity to make even better changes here and his leftist rhetoric will scare some investors away and keep prices down so we can accumulate more. Just imagine these prices. A cute little home we stumbled cross on a recent morning walk in a quiet part of the village has a ridiculous low asking price of $25,000.
This sits on a lush piece of land and I believe with a paint job will sell for double its asking price.
However we have to consider the risk. The new President has been making leftists sounds. We do not think this will have an effect and believe this will bring us better returns. However as a precaution we’ll make our portfolio more conservative elsewhere.
We are starting a new Ecuador internet service. The annual fee will be somewhere between $99 and $149 a year but before we start up are making a really special offer. Order our Ecuador Report now and I'll sign you up for a free year's subscription to the internet service. You'll save somewhere between $49 and $100! You can order the report at https://www.garyascott.com/catalog/ecrep/
Until next message, may all your international investments be good.
P.S. Join us in the Ecuador sun this winter. Here is a schedule of the courses Merri and I will sponsor and or conduct.
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.