Merri and I had lunch today with one of our bankers. The consensus was clear if you are investing in equities, the global gorillas with worldwide income, good cash flows and revenues will be the place to be. Cash pays nothing, bonds are low yielding. Commodities have done nothing for nine months.
Merri and I are lucky… several years ago we recommended investing in overseas government bonds and we invested ourselves paying 8% to 13%. These are good into 2015 and 2016 so we’ll hold them for now, but as liquidity comes in it has been going into US (mainly Florida) real estate.
This is the type of house we have been offering on… short sales.. foreclosures and just plain sales… 3 bedroom, 2 fl baths, 1,400 to 1,700 square feet in the $55,000 to $100,000 range… good for rentals or appreciation. These offer enormous value in our opinion… but finally prices are beginning to rise.
Those who have been reading our site for some time know that beginning in the late 1990s through mid 2000s we sold much of our Florida real estate and began buying Ecuador property. .. much more than we had in the US.
Then in 2009 we switched and started selling some of our Ecuador real estate and began buying back in Florida. Over the last three years we have watched a firmness start to take hold with prices in Florida.
A USA Today article entitled “Average U.S. home prices — down by a third since 2006 and still falling — will rise almost 4% a year for the next five years, according to a new forecast” by Amy Sancetta. This fortifies my feeling that US house prices are on the rise.
Here is an excerpt: Market watcher Fiserv sees prices stabilizing by summer’s end and then climbing, quickly in some places until gains taper off. The forecast is based on an analysis of leading home price indexes.
Investors will drive much of the momentum, as they are now in cities such as Las Vegas and Phoenix.
First-time and trade-up buyers will eventually follow.
By the time home prices stop falling, they’ll be almost 35% below their 2006 peak, Fiserv says.
Separately, market researcher CoreLogic said Tuesday that U.S. home prices rose 0.6% in March from February, the first month-over-month increase since July.
Good affordability and declining inventories are key factors.
Conventional mortgage payments now account for just 12% of median family incomes vs. a historical norm of 20%, says Fiserv economist David Stiff.
The Fiserv forecast, done with Moody’s Analytics, assumes steady economic growth with no major shocks. Markets hardest hit by foreclosures will show the biggest five-year increases in home appreciation, it adds.
Six of the 10 markets where annualized prices are expected to rise most over the next five years had price drops of more than 50% from their peaks.
These markets expected to rise most and of course includes Florida. Take advantage of low prices while you can
Rising US real estate prices will also increase the flow of Americans southwards into Latin America. Ecuador real estate will be one of the benefactors of this move. Prices in Ecuador will rise along with US prices.
Ecuador’s real estate and residence evolution is moving right along also.
A lot has changed in both areas since we began traveling to Ecuador 17 years ago.
Now Ecuador real estate and the movement of Americans to Ecuador is about to get a boost from US real estate as it finally begins the upward journey again.
This increased pressure could also force tougher rules for visas. Buying real estate in Ecuador and through most of Latin America will cause changes. Most Latin governments I believe are surprised by the flow of gringos and are now grappling with how to deal with and profit from this wave.
We are helping readers stay in touch with this change and recently shared an updated report entitled BUYING REAL ESTATE IN ECUADOR LEGAL REPORT by Dr. Andres Cordova, a prominent Ecuadorian attorney, who has helped hundreds of our readers over many years.
Ecuadorian real estate prices are much higher than a decade ago but still offer tremendous value in these uncertain times. Whether you are looking for a property solely as an investment, or to develop, or as a place to spend part of the year or to use full time; Ecuador has many options for you.
The financial and confidence crisis in North America and Europe and the demise of many former safe havens and hot-spots for real estate investing are prompting many people to look towards Ecuador to find positive distortions.
You can buy in the highlands or on the coast, in the big modern cities or in small, quaint towns. Ecuador has a fantastic cultural and natural landscapes, with great weather and warm and welcoming people.
The Ecuadorian Constitution establishes that foreigners have exactly the same rights as Ecuadorians do. Private property is a pillar of our legal system and therefore protected in Ecuador.
This report establishes general tips and elements of the purchase and deeding procedure. (It is not meant to replace direct legal advice.)
Previously this report was available only to our Ecuador Living Club members but I can now share this with all is now because Andres just wrote:
Gary, let’s give all your readers the report and let’s give a discount of $150 on all legal services to all Ecuador Living Club members plus send them an extra report with enhanced information.
I am getting many inquiries for visas and have been diligently attending to all of them. Changes are taking place in the visa process and I am preparing a report on this for your readers as well.
Click here for the full Ecuador Real Estate Report
This is just one more benefit for Ecuador Living Club members.
If you are a free Ecuador Living or Gary A Scott subscriber, the Ecuador Ateam works hard to happily provide a free daily message with over 2,000 free pages of information in our archives. You can access these at www.garyascott.com and www.ecuadorliving.com.
You can use the search engine at each site to check phrases related to any questions you have.
Our Ecuador Living Club gives you password protected access to personal replies to your questions and to our contacts developed over 15 years… guides, attorneys, doctors, dentists, alternative and complimentary healers, real estate sellers and renters, guides, airlines, hotels and so much more.
Ateam Ecuador can put you in touch with the many contacts we have developed over the past 17 years.
You can become a member and obtain a password and make the $150 discount on legal fees available by clicking here.
We encourage you to become a Club member because we can help you gain safety, efficiency, comfort plus great savings in Ecuador.
For example we help club members gain hotel discounts in the most visited parts of Ecuador.
One club member wrote:
Hi, I am in Cuenca with my family, wife and 2 little ones. Was wondering if you could help me with a driver from Quito airport at 9:20 am, Friday August 12, to Hotel Land of The Sun for 1 nite. Want to go to the markets Saturday on the way back to Quito and the Radisson( thanks for the great rate!). Will need a driver for that also. I was suppose to do your shopping deal after the Ultimate Event in Feb but missed the Event at the last minute, death in the family. Anyway, any info will be appreciated. We stayed at Palmuzul 3 nites at 40% off and reduced rates at the Radisson in Quito and La Piedra in Bahia de Caraquez. Thanks for already saving us a fortune! Looking forward to seeing Cotacachi before we head back.Thanks again.
Helping members find real estate to buy and rent is one part of our premium services. If you have an interest in traveling, investing, living, buying property or doing business in Ecuador, membership in the Ecuador Living Club brings many benefits.
One huge benefit in using our service versus relying on brokers or travel agents is that we are not trying to sell real estate. For our modest subscription you get our honest opinion based on 43 years of international business and 15 years in Ecuador. You gain access to our extensive contacts plus you get to share the input from over 30,000 subscribers who continually let us know what they see hear and experience good and bad. We sponsor real estate tours to help our members learn Ecuador’s real estate market in the most efficient way.
We share the experiences we have gained living, traveling and working globally for 42 years and have been investing living and doing business in Ecuador for 17 years. We have an active Ecuador business and have personally purchased a 962 acre hacienda, condos in the mountains, a house, a hotel plus condos and apartments on the beach. Our Ecuador Living service shares our continual research and experiences in global business, living and investing in Ecuador.
For the modest membership fee, you immediately gain numerous benefits.
First, part of your subscription includes a copy of the $49 page report “Ecuador Land of the Sun.” We email it to you at no added cost.
Second, you are provided a personal password to receive exclusive updates about what is going on in Ecuador… plus gain contacts and personal access to the Ateam Ecuador.
Third, you are entitled to a free nights stay (worth $72) at Inn Land of the Sun (formerly Meson de las Flores) in Cotacachi. (The fourth night is free when three nights are booked).
You are also entitled to free use of wireless internet at the Inn and the VOIP phone system at the inn (free calls to Europe, Canada and the US) even if you do not stay at the hotel.
The Relais & Cheateux La Mirage Garden Hotel & Spa in Cotacachi also offers upgrades on a space available and other benefits. See La Mirage here.
We provide discounts at Quito hotels.
Most people who visit in Quito stay at least two nights (arriving and leaving) so the hotel savings alone can exceed the cost of subscription.
One of the hotels is Quito Stubel Suites & Café.
See more on the Stubel and its incredible views here.
In Cuenca two hotels offer discounts to our readers. One is the Villa Nova Inn.
In Bahia you save at the Hotel La Piedra
Plus club members can save hundreds… even thousands on Galapagos cruises… again because due to our large readership we can pass on travel agent fees to members in the form of savings.
See more about Ecuador Living Club membership here.
The global economy is in a time of incredible opportunity when numerous basic investments such as agricultural and residential real estate are available at values far below replacement costs. During such times it is difficult not be be caught in the doom and gloom. This is the fourth global economic downturn I have lived through (1970s, 1980s, 1990s) and each has created phenomonal riches for those who got in the flow of the economic evolution.
Our mission is to help readers in this quest.
We also offer courses to help readers learn Spanish in just three days and more.
Our online course on how to create a global micro business help readers learn how to retire early and earn as they travel.