Any informed decision requires a look at the big picture. How an economy is fairing has a lot of impact on what home prices are doing. In the case of Ecuador the economic picture looks good. Unemployment remains low compared with most countries in the region, GDP is increasing at a steady 3%-4%, and the national debt remains manageable. The countries main exports – oil, bananas, flowers and cocoa, and various other fruits and vegetables – remain in demand. Nothing is ever certain, but the economic future of Ecuador looks solid.
Thinking about getting a loan to finance part of a property purchase in Ecuador? You may want to reconsider that. It is very difficult for someone who is not a Ecuadorean national to get a real estate loan. Even if you are Ecuadorean you will be paying 13% – 17% interest.
The upside is that for little more than you would be paying for a down payment on a home in the United States or Europe, you can buy the entire home in Ecuador. All things are relative.
I just had a conversation with an old time real estate agent who used to sell property in the United States during the 1970′s and 1980′s – the pre-internet age. The was no multiple listing service or any type of property data base to go to for knowing what was on the market and how much similar properties had sold for. Networking and relationships were king. Those agents who knew who to talk to and where to look found the best deals. Things have changed a great deal in the United States and Europe, however buying real estate in Latin America still harkens back to those older days. Knowing someone who knows the market can make all the difference in finding the right property at the right price.