Multi currency inflation is with us.Merri and I are conducting our International Investing and Business course this week. When we do these courses at the farm we provide al the meals. Merri is a great cook and everyone enjoys her home cooking, and she enjoys it also.
We do all the shopping for these meals and just being back from Ecuador…wow…sticker shock!
Being a multi currency investor, my portfolio is up…but it needs to be with rising prices. My heart goes out to anyone trying to preserve purchasing power with investments just in US dollars.
Quality has suffered here as well. We feel deprived in US super markets after shopping in Ecuador’s markets where the food is fresh, the fruit and vegetables ripe…as well as costs a fourth or less of the US.
This is what we are used to in Ecuador with food prices so low it makes us want to give the people more than they ask.
The first is because of commodity hikes.
In February, I wrote an Ecuador Beach Condos Introduction.
This introduction revealed a number of brand new beach view condos available for $79,000. The developer reported that these condos literally sold out in a week. However he also offered all the buyers a 60 day cooling off period. Several have dropped out so a few of these $79,000 units are on the market again.
My feeling is that these $79,000 units will not last long based on the reply that the developer Kjetil Haugan sent when I asked if these units were still available at this price.
“Gary, thanks..it is ok for me to offer the apartments at $79k with the $5,000 club fee waived. The problem I am facing now is that building material prices are going up every month..steel has gone up 65% since January and the total construction cost is about 40% more than it was in November 2007..it looks like we will be able to do the infrastructure a bit less expensive so I am okay with this price but we want to build most of the blocks as soon as possible before prices will be even bigger problem! We have started with two blocks now and will start with the upper blocks where you bought next week.”
The second reason I believe prices will rise in Ecuador is that the Italians and Spaniards have caught on!
Our friend, Anne Williamson, is a veteran journalist, who has written for the Wall Street Journal and the New York Times. She authored a definitive and eye-opening analysis of the nation’s banking system for WorldNet and discussed this issue on national televion and radio programs, including “The O’Reilly Factor.” . She is an authority on Russia and international finance and testified before the House Banking Committee.
Having spent months with us in Ecuador she has caught on quickly and sent this note to us.
“Hello Gary, I spotted the above in an email from idealista.com (a weekly investing review of Spanish and Italian real estate trends), and thought you might find the information useful. All the best, Anne
“A dwelling in Quito or Guayaquil, the same price as a garage in Madrid
Negocio, Monday 12, May 08.
“A three-bedroom dwelling measuring 800 square feet in a luxury complex in Ecuador can be bought for €36,000, which is equivalent to what, with luck, a well-situated garage costs in Madrid. These low prices have made Ecuador a destination to be taken into consideration by Spanish investors as the same dwelling would cost €126,000 in areas such as Mexico or the Dominican Republic the market in Ecuador is expected to offer 7% returns in the coming years.”
This will make it tough for Americans and diminished dollars to compete with the Europeans and their euro which has double in strength against the greenback in the past few years.
You can learn more about the $79,000 beach condos from Kjetil Haugan at email@example.com
Inflation is everywhere but multi currency investing in real estate, commodities and shares can maintain and increase our purchasing power. This is what I am doing and look forward to sharing my experiences with you.
See dates for our other Ecuador courses and tours:
Here is a house on the beach we saw on our last coastal tour.
Here is a house in Quito we’ll see on our next tour.