When expatriate American retirees and vacation home buyers look outside the United States, they traditionally flock to the Caribbean, Baja or Costa Rica to enjoy a peaceful setting and better value for money. Now, a new home for escapees from the US housing market awaits those willing to look a little further south.
Ecuador has an unfair share of natural wonders that entice visitors to settle longer. Containing both the Galapagos Reserve and the Chocó Rainforest, the South American nation of approximately 18 million people features vast biodiversity and unique travel offerings in the country. Meanwhile, major cities in Ecuador such as Quito and Guayaquil offer international airports, universities, hotels, and high-end restaurants.
Following a financial crisis in 2000, the Ecuadorian Sucre collapsed. The country quickly adopted the US dollar as its national currency, ensuring that American expats who travel there never have to calculate exchange rates, even if their money extends further than it would. at their home.
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The hottest current real estate market for American immigrants in Ecuador is Cuenca. The town of around 661,000 in the country’s southern Andes highlands is a UNESCO World Heritage Site, with homes and condos in its town center and surrounding green countryside offering affordable luxury and history. in the same purchase.
Dominic Hamilton, director of communications at Ecuador’s Metropolitan Touring, is a longtime London transplant whose work keeps him up to date with the country’s developing regions. He cited the nation’s adoption of the US dollar to stabilize its economy and the country’s unique biodiversity as key factors in attracting expatriates.
“The cost of living in Ecuador is very low compared to the United States, and therefore attractive to anyone looking to retire comfortably,” Hamilton said. “You can live a life of luxury for around $1,500 a month.”
Mr Hamilton ranked Cuenca as one of the fastest growing areas because it offers a good balance of reasonable size and population, efficient urban facilities and a “climate in an eternal spring without extreme weather conditions”. .
“The city has good infrastructure by Latin American standards, with good water, electricity, internet and a recent tram system which has improved urban transport,” he added. “It’s an accessible city, with several rivers, and its outskirts amid the rolling Andes has also become a popular settlement location for retirees.”
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Homes for sale in and around Cuenca include a 4,700 square foot two-bedroom condo near downtown for $397,000 and a 2,823 square foot three-bedroom apartment outside of downtown for $285,000. A three-bedroom, 3,550-square-foot ranch-style home is also available for $215,000 in the lush hills around Cuenca, and a three-bedroom home near Cajas National Park for $350,000.
“Living in Ecuador part-time in a vacation home or moving here opens up a whole new world of exploration,” Hamilton added. “There are wildlife experiences that you can only have in Ecuador.”
Edward Lindquist, a native of Fresno, Calif., has been editor of Cuenca Expats magazine for seven years. Ecuador’s proximity to North America, the friendliness of the people and the beautiful scenery are the main reasons Americans shop in the country, beyond economic value, he said.
“Real estate prices are low compared to almost anywhere in North America,” Lindquist said. “Holding costs such as taxes and insurance are very reasonable.”
Mr. Lindquist cautioned that owner-financed, mortgage models of buying a home in the United States are generally not available in Ecuador. Cash remains the convenient way to buy real estate, reducing the total number of transactions involved in buying a home.
“Soaring house prices and high inflation plaguing the United States have not found their way to our country,” Lindquist added. “Here you can own an oceanfront condo for less than $100,000. Legal residency is not required to purchase property, and since Ecuador’s official currency is the US dollar, unexpected exchange rate fluctuations are not taken into account.
Mr. Lindquist explained that there are around 20,000 English-speaking expats living in Ecuador, half of them in Cuenca. His magazine’s research shows that 25% of the community have purchased a condo or home, and many of those homes are used seasonally by North American “snowbirds.”
Ecuador-based expats Edd and Cynthia Staton, authors and creators of the Retirement Reimagined! website, said Cuenca attracts American immigrants because of its understated sophistication.
“Cuenca offers a surprising amount of culture and sophistication,” Mr. Station said. “There are three major hospitals and universities, restaurants, art galleries, shopping malls, cinemas and an accomplished symphony orchestra with free shows. Thanks to all these amenities, Cuenca’s expat population has exploded from around 500 when we arrived in 2010 to over 5,000 today.
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As the city becomes more well-known, expats will continue to live and invest there, Station said. “Yet, with a median age in Ecuador of just 27.9, the locals will contribute much more to Cuenca’s growth.”
Expats add approximately $360 million to the local Cuenca economy each year. That’s a disproportionately high amount for such a small portion of the population (less than 2%), but it’s still too low to move house prices, Lindquist said.
“Moving overseas and becoming an expatriate is still a leap for many in the United States,” he said. “It would take an incredible diaspora to change the dynamic here. In the future, I would expect to see more expats coming to Ecuador without titling the social order in any way.
Still, more American expats and further changes are coming, Hamilton said.
“I think word of mouth from so many happy retirees and home buyers will definitely take more inspiration from the United States,” he says. “Combined with the demographics of aging baby boomers and soon Gen X looking to retire comfortably, I think we will see the development of more exclusive developments in the outskirts of Cuenca, with more golf courses and facilities medical services to meet the needs of retirees.”
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The influx has certainly benefited the construction industry, but not everyone is in favor of the influx of retirees.
Mr Hamilton said he expected there would inevitably be reservations or resentment from the local population towards this influx of well-funded foreigners who often do not speak Spanish and are not very interested in integrating into local society.
“On the other hand, expatriate home buyers are undoubtedly injecting dollars into the economy, with the added financial impact of friends and family coming to visit and visiting Ecuador.”