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Ecuador Real Estate – facts about buying property in Ecuador and finding out local regulations

Thanks to one of my readers, I came to the attention that in Ecuador there is no such a thing as “Short Sales” on properties. I will try to provide some inside view about Real Estate Sales in Ecuador.

Latin American countries have particular structural features that complicate the regulatory environment of capital markets and affect the effective execution of short sales on real estate properties. For local Ecuadorians to purchase a real estate investment through a lender (Bank or Government Agency) it is easy since the introduction of the US dollar as the official monetary unit for all banking and government transactions.

In theory financing is available in Ecuador, but in practice it is difficult to arrange for foreigners.

The Ecuador constitution guarantees free access to the banking and credit market to locals and foreigners alike. The same as it guarantees the free right to own and hold property.

You can buy real estate once you land in the country using only your passport as identification. This is not just a policy of the current administration that can easily be changed – the Ecuador constitution guarantees the right to buy and hold property for everyone, citizens and foreigners alike. In fact, once you are in the country with a valid visa, the Ecuador Constitution guarantees that you have the same legal rights as Ecuadorian citizens, with the exception that you can not vote.

Additionally, there are no restrictions on owning beachfront property as there is in some other countries. Real Estate problems have mostly been the result of buying property that the seller did not have the right to sell – a proper title search, or buying title insurance, mitigates this risk.

The difficulty that foreigners face on financing is the inexistence of a “credit rating” system in Ecuador. Adding to this, there is a high default rate in their financial system, so it’s hard to qualify for a loan without a local employment history or a co-signer.

A good credit rating in the US does not mean anything here. Interest rates are typically 12% or more, and 30% to 50% down payment is standard.

The great opportunity to take advantage is on Pre-Construction Featured Projects in Ecuador. You could finance your down payment free of charge and cero interest until the project is ready. Also you could sometimes get the sellers to provide future direct financing, but they will typically require at least 50% down payment.

Getting back to the term of “Short Sales”, the definition applied to this term in Latin America it is completely different, “short selling” relates to market shares or stocks.  Latin American capital markets are characterized by the following factors affecting country risk perception from the international investor perspective:

  • Reduced liquidity
  • Limited price formation
  • Unavailability of information
  • Small economic size

All this facts makes it difficult to assess the appropriateness of short sales norms. Let’s say in Ecuador there is no currency market since their official monetary unit is US Dollar, so there is no possibility of short sell that would depend on the existence of a fixed or a floating exchange rate regime.

Therefore, Ecuador does not approved or makes it feasible to short sell in equity markets; there are no regulations on the topic.

This is the best place to invest in cheap property, not to go on market trading…

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If you need help with information related to buying property in Ecuador at real cheap price let me know… Hereyou have a sample of a real cheap property only $ 65.000 US dollars on sale directly by owner, ocean side gated community in Playas Villamil, the best ocean weather in the world.

 

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Showing a bit more of Ecuador…

First working day of the month of October and by reading most of my friends and colleagues e-mails, I am realizing that weather change is approaching. It is getting cooler up north, and we are getting warmer here in our tropical Coastal Ecuador.

I use to enjoy and welcome fall and winter, it meant slowing down, looking intro perspective, and start building and planning my next steps in life. But also, this reminds me one of the main reasons to be living in Ecuador with this nice hot warm weather.

Around the year 2000, when I was developing my professional path in USA and Latin America, some health issues interrupted all my wonderful working and travelling plans.

Within all the travelling options, one was to visit family in Ecuador. Once on my trip, I ended up checking the local health and medical resources because of a severe pain crisis (spinal discs problems). I was basically pain managing for a couple of years but came to that point that I needed surgery.

Let´s make this story short, it was my second back surgery, I had already one done in Canada with success. So without even thinking or making my health a priority in my future plans, I review all the options and opted for the best ones at that specific moment:

1.- My medical expenses were covered here in Ecuador by my insurance policy

2.- I could opt for top level doctors and hospital beds, since the rates were lower here in Ecuador.

3.- All international insurance companies have local referrals that are practitioners who have done their studies in USA or Europe, even award winners professionals.

4.- Since I was covering expenses directly, I did not have to wait on line for tests or MRIs.

5.- I could set up myself in a nice upper scale condo with house help for less than 1.000 US. (I need 3 months at least to be able to drive again)

I had the surgery by a recognized worldwide surgeon, a nice recovering period, fresh home made food and care, and I was keeping up with my pending working projects and connected to the world by the internet.

Maybe this is not an option for everybody, still you could always research medical options overseas. There are online medical referrals to consult your options even here in Ecuador.

I will leave you with some nice pictures of some of my personal adventures here in Ecuador. I was asked by one of my readers if the posted pictures are original, I would say mostly they are. At times, some pictures are from other sources which may narrow the certainty of their originality.

P.S. Due to my health issues cold weather doesn´t agree with me,  and in Ecuador, I am able to afford on going therapy and massages plus attend exercise classes like yoga and Pilates to manage my health as I am aging.

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The Joys of the Dominican Republic

Dominican Republic – another affordable country for sun-loving boomers and prospect expat retires. This is great news!! Our Dominican Republic collaborator has new locations and opportunities on our radar screen.

Welcome to invest in the Dominican Republic

Imagine a place in the Caribbean surrounded by a contrast between the mountains, the sea, and a beautiful marina bringing to life the perfect harmony between natural beauty and human creativity. A place where summer lasts all year long and every day begins with a new experience; exploring incredible destinations, enjoying a safe and familiar environment.

Well, stop imagining, keep up the speed with us and soon we will publish great properties opportunities.

FUTURE PROPERTY DEVELOPMENT

Offering the highest standard in commodity and luxury whether it’s in its exclusive hotels or in any of its many residences; apartments, villas and townhouses, you will find in Samaná Bay and Sabana de la Mar your dream come true,  The Samaná Peninsula is known to have one of the most beautiful bays in the world.

The Dominican Republic has a modern airport system in the main regions of the country, providing comfortable and efficient access. Given its privileged location in the bay, sailing from Puerto Rico, Bahamas and Florida is ideal for those who rather arrive by water.

You will find both locations in the following map.

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