To buy or not to buy Ecuador’s beaches

April 25th, 2010 by The JetSetter Team | Comments Off on To buy or not to buy Ecuador’s beaches

international investingEver wished you were ahead of the curve on a really good deal? Wouldn’t it be great to be first in line for the steal price rather than stuck in the back paying twice as much? Sorry, that’s how capitalism works. Rising demand of a limited quantity of goods means higher prices. In this case, the goods come in the form of prime beach location along Ecuador’s most under-developed, nicest coast. With 1,400 miles of coastline (that’s more than Florida) this central American country is set to soar in popularity with the gringos from the north but you can still buy a luxury beach home for $100,000.

That’s crazy.

A house on a large lot right on the beach in an upscale community costs about one hundred grand. Why, you ask? Here’s the rub. Though the country has developed a fairly stable democratic government and even adopted the United States dollar as its official currency, violent crime is still rampant – thus the appeal of living in a gated community of expatriates. Some areas of the country are beset by drug and small arms trafficking and if you get too close to Columbia you have to worry about terrorist incursions from that area.

Taking a page from the Mexican book of entrepreneurship, there have been at least 11 instances of Americans being kidnapped over the past decade and held for ransom. Does that $100,000 beach house still look good? Maybe not so much. On the face of it, Ecuador seems to have room for improvement before all but the hardiest American traveler chooses to relocate there.

The Jetsetter Team

Flickr / Carlos Adampol

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