Why Ecuador?

For a lifestyle that would cost you $5,000 a month in Nebraska…or $9,000 a month in New York…you'll pay $1,595 (or less) in Ecuador

But that's not the best reason to come.

It's true…the cost of living in Ecuador is a fraction of what we paid back in Omaha, Nebraska. But that's not really what drew us to Ecuador. We moved to Quito because…

The weather averages a comfortable 75 degrees year-round, and that means we can wear short-sleeved shirts every day…but we're never roasting hot. The air is dry, and we aren't badgered by mosquitoes. At night, the temperature is an agreeable 55 or 60 degrees, and so you can build a fire for ambiance…but you won't need it for warmth.

Surrounded by volcanic peaks that stretch 15,700 feet into the sky, we can sit on our front patio each morning in the clear mountain air, sip coffee, and bask in the equatorial sun. Yet we're not isolated. Ecuador offers easy, affordable access to the rest of South America. In recent weeks we've explored Peru, Argentina, and Venezuela.

Inside this tiny nation, barely larger than the state of Nevada, at least 14 different ethnic groups live side-by-side some still speaking the language of the Incas. Fine craftsmen and attentive caretakers of their land, Ecuadorians adhere to the natural healing traditions their ancestors taught. And whether they live in jungle river towns or coastal fishing villages…colonial cities or isolated cattle ranches…they are a friendly and polite people, which makes day-to-day living here a pleasure.

Where 'Land of the Free' still exists

Ecuador is gentle…safe…healthy…private…civil. As one friend of ours put it: 'It's like living in the 50's back in the USA.' You're guaranteed a quality of life that just plain doesn't exist anymore in the States. Up north, violence, materialism, and increasingly intrusive government policies have whittled away the last vestiges of The American Dream. Yet here you're guaranteed a truly extraordinary lifestyle. And that makes Ecuador the perfect place to retire…to reinvent yourself. You'll find like-minded company when you do.

The 'transplants' we've met have not only embraced the improved lifestyle in Ecuador, but they've discovered a wealth of opportunity in businesses as diverse as button-making and shrimp-farming.

…Betty Sachs, an attorney, and her husband Diego, a translator and editor, left their New York careers behind, moved their young family to Ecuador, and built a successful inn on 25 acres in the Andean highlands.

…Global real estate aficionado Gary Scott and his wife Merri created a retreat center here and consider Ecuador their second home. Now they're involved with the production and marketing of a natural substance called BIRM, or Bio Immune Response Modulator, touted as a modern miracle born in the jungles of Ecuador.

…Robert Montgomery has been interested in Ecuador's eco-logging possibilities since he arrived in 1999 and now he has a company that cuts exotic hardwoods from stands near the Pacific coast in a way that assures their health and growth.

…Young Matt Guillory came to Ecuador looking to purchase real estate. Instead, he ended up working with local artisans to create an Internet-based business marketing Catholic religious items --intricately carved wood reproductions of saints, silver candle sticks and incensors, etc. He says his 'little business is really starting to take off.' Plus, he has married a local woman and they are now expecting their first child!

Labor in Ecuador costs 85 cents an hour. As a foreigner doing business here, you'll receive the same rights of entry into markets as locals, and you can own 100% of your profits and capital…that means you don't need a foreign partner. Plus, Ecuador uses the U.S. dollar, so you don't lose money in currency exchange or controls.

Live healthier…longer

This is a place where you can reconnect with the earth and discover the pleasure of the natural rhythm of the world. For millions of years, Mother Nature has provided natural remedies to soothe our pains, calm our anxieties, and protect us against illness. But in the last century, synthetic medicine has surpassed these natural remedies in popularity and accessibility…except in a few small, protected pockets of the world. Ecuador is one of those places.

Here shamans, curanderos, tribal chiefs, and citizens still live in harmony with nature…tending their crops, performing their sacred ceremonies, and employing healing traditions that go back to the dawn of time. Living here you find your life more balanced…and your habits more healthful.

You eat organic fruits and vegetables…because that's what's sold in the markets. You walk more…because the pace of life is slower and you take the time to do it. The hours you once wasted in commuter traffic, you now spend in the relaxing company of friends. No longer do you while away entire days under fluorescent office lights in a climate-controlled building…now you're outside in the sun. Living here is energizing…restorative. Simply put: You feel younger, years younger, every day.

And, yes…the affordable cost of living is persuasive. In Ecuador, you can employ full-time household help to cook and clean for $30 a week…enjoy a gourmet meal for two, with wine and dessert, for $25…get a haircut or take a taxi for $3…have your shoes shined for 30 cents…own a grand colonial mansion in the heart of Quito's old quarter for $150,000 or a three-bedroom home overlooking the ocean for just $85,000…pay just $600 in rent for a three-bedroom apartment in a chic neighborhood…

Here you're a world apart…but not isolated

For us, moving to Ecuador was as much, maybe more, about adventure and a better quality of life as it was about value investing or affordable living. But the good news is that Ecuador delivers on all those counts.

You can find cheap land all over the planet…Ecuador is no exception. But in many locales, you'd lead an uncomfortable life, far from friends and family and disconnected from the rest of the world. Not so in Ecuador.

In this country, you can golf on breathtaking courses so free of crowds you never have to make a tee time. A gourmet meal in a world-class restaurant costs about what you'd pay for bottled water and an appetizer in Los Angeles, New York, or London. The fresh fruits and vegetables you find overpriced at specialty shops up north…sell here at the local markets for pennies.

Daily flights depart for destinations across the hemisphere. Cell phones seem to be standard issue. Cyber-cafes are easy to find, and home-computer hookups are common. Cable TV gets you the major U.S. networks, CNN, three HBO channels, CineMax, TLC, and more (for less than $50 a month).

Whether you thrive on the hustle and bustle of the city…or you are drawn to high mountain valleys where cowbells are more common than car horns…

Whether you crave the sun, sand, and crashing surf…or have always dreamed of a rural retreat where you could ride your horse into town for lunch…

…you'll find that pleasure in Ecuador. As International Living's representatives on the ground here, we've spent the last year seeking out the best opportunities for living and investing in this country and have been astounded, above all else, by its dramatic diversity.

From the Pacific coast cliffs here, sand there to the snow-capped Andean highlands…from the cloud forests of the Oriente and the dense Amazon jungle to the deep, green valleys of the southern sierra…this country is like a continent in miniature.

We had the luxury of time to spend exploring this glorious country. Along the way, we interviewed attorneys, grilling them about the ins and outs of residency and property ownership. We spoke to resident expatriates about what they like and dislike about the country. We corralled business owners and got their take on the best investment opportunities.

And we took excellent notes. (We were journalists in a past incarnation up north…and old habits die hard.) For the past eight weeks, we've forced ourselves to sit behind our desks at least a few hours a day to put it all down in a useful, easily digestible form. Nearly 200 pages later, we're finally done, and we've produced an entirely new and updated version of IL's Ecuador: The Owner's Manual. Everything you need to know about starting a new life here…detailed by people who have done it.


Safe…and on the road to economic recovery

We'll give you the highlights of what we discovered in a moment, but first we should probably back up and reassure you: Ecuador is a safe place to live and invest.

We can't say crime is unheard of. Petty theft, particularly in the big cities is an issue…as it is in all big cities. But a bolstered police force and greater attention to education have been brought to bear on the problem.

Ecuador is a peaceful country. The population is gentle. Even in the throes of a violent economic upheaval when the local currency careened downward, losing 67% of its value against the dollar in 1999, protests were peaceful. Nobody fired a single shot.

And economically speaking, Ecuador is walking smartly on the road to recovery. Back in 1999, the footing was less certain. The country had suffered everything short of the plague: a drought…then rains that washed away much of the country's infrastructure and crops…plummeting oil prices…near triple-digit inflation…failed banks…frozen assets…the collapse of Asian and Brazilian economies, which further hurt trade…and political deadlock, which made effective government reforms impossible.

These conditions produced extremely cheap real estate. Cash-hungry Ecuadorians were parting with their property at unheard-of prices.

In 2000, with its back against the wall, Ecuador implemented an economic program aimed at stabilizing the country. It replaced the sucre, the local currency with the U.S. dollar, and the congress managed to approve significant reforms in tax and Social Security law.

The situation has improved quite a bit in the two years since. The GDP-growth-rate was at 5.4% in 2001…making Ecuador's one of the largest growing economies in South America. Progress continues on a new oil pipeline from Ecuador's eastern oil fields to the coast, which will be complete in 2003 and double oil exports to about 800,000 barrels per day. Inflation has plummeted and is expected to be in the single digits within the next two years.

The November 2002 presidential election brought to power Lucio Gutierrez, a former army colonel who campaigned on a platform promising to root out corruption and give voice to the poor.

While his leftist leanings at first unnerved jittery foreign investors, by the end of his campaign his platform had clearly shifted toward the center. He went to lengths to assure Ecuadorian and international financial circles that his administration would not pose a threat to investors, and he supports the continued use of the U.S. dollar as the country's currency.

The positive economic news and the election have slowed the pennies-on-the-dollar real estate market, but the upside is that, despite higher entry levels, property prices should continue to appreciate. Indeed, prices and costs for almost everything should continue to increase for the next three to five years.

That's good news if you're looking not only for a comfortable, quality lifestyle…but for a place where you can invest now and watch the value of your investment increase. The best places to make that sort of investment?


Cosmopolitan living in stately Quito

Ecuador's colonial capital provides cosmopolitan living at 9,000 feet. That means excellent restaurants, first-rate hospitals, easy-to-use public transportation…and most of the other conveniences you're used to back home.

Brand-new condos (one- to three-bedroom) list from $40,000 to $73,000. In the hippest neighborhood, a four-bedroom, three-and-a-half-bath house with a large terrace overlooking the mountains is going for $160,000. If you're looking to rent, you can get a three-bedroom luxury apartment in Quito's most elite neighborhood for $600 a month.

For life in the sun (and excellent shopping), a hacienda in the 'Swiss Alps' of Ecuador
Otavalo is home to one of the largest indigenous markets in South America. The scenery, with its craggy peaks and mountain lakes, is Swiss Alps quality. The town is tidy, and the Otavalo Indians are among Ecuador's most business-savvy and prosperous, making and selling some of the finest textiles, woolen items, and hand crafts available anywhere.

In this region, you'll find some of the best living in Ecuador. If you like the outdoors, you'd be in your element as you can ride horses, sail, hike, and climb. Homes here, the best deals are on those you can build on the grounds of several nearby haciendas, will run you only about $50,000 (in some cases less). And you gain the benefit of sharing the utilities and facilities with the hacienda, which cuts down considerably on your costs and on bother.

Warm weather and friendly neighbors in intellectual, artistic Cuenca

A UN World Heritage Trust Site, Cuenca is another destination you should consider. More charming than Quito, this city nurtures a thriving intellectual and artistic community. Though the drive from the capital is long, daily flights connect the two cities, and they only cost about $50.

As elsewhere in Ecuador, the property prices represent good value. For example, you might consider one of three apartments in a brand new building on one of Cuenca's most fashionable streets. They range from 1,400 to 1,700 sq. ft. and are three-bed, three-bath with full kitchens, servant's quarters, and garage parking…listed for between $65,000 and $98,000.

A bit more, $250,000 and up, will buy you a beautiful, colonial-style building in Cuenca's historic district, with 10,000+ sq. ft. of space, including courtyards and interior gardens the kind of place perfect for renovation into a hotel, restaurant, or bed & breakfast.

Live to a ripe-old-age in the Valley of Longevity

Tucked away deep in southern Ecuador is the sacred Valley of Vilcabamba known for its long-lived locals and its hippy transplants. (Young counter-culture types made it to Vilcabamba in the 1970s as backpackers and never left.) Gentle and pristine, this valley offers a mellow lifestyle, organic food, and lots of 'communing with nature.'

What does it cost to buy here? Less than you might think. Chaupi House, a two-story traditional Ecuadorian place with five bedrooms on 2.5 acres with lots of fruit trees and an irrigation canal that provides fresh water year-round, is on offer for $50,000. Across the road, a substantial home with a separate guesthouse, all on 7.5 lush and gently sloping acres, lists for just $80,000.

Coastal properties: from $20,000 a lot

Ecuador's coast is magnificent - miles of rugged cliffs, beautiful sandy beaches, sleepy fishing villages, and thriving metropolitan areas. If you want night-life, you can have it. If you're looking for a sleepy retreat, you can have that, too.

In terms of property prices, some of the best deals are in and around the small fishing village of Crucita on the central coast. Perched on a lofty cliff overlooking the village is Villa Balsamaragua, a mountainside development featuring 60+ lots of approximately 3,200 sq. ft. running $20,000 a lot. You could build a house here for about $85,000.

If you'd prefer more infrastructure, but you still want to be on the water, consider the very first-world city of Manta, a major seaport where a new American military base is being built. (This base is stimulating the local economy and creating rental possibilities for investors.)

In Manta, you'll find more refined properties than at Crucita - but you'll pay more for them, too. Adjacent to the Hotel Oro Verde and on the beach, a high-rise apartment building is under construction. One mid-sized apartment, including a covered parking space and use of the swimming pool and other amenities, lists for approximately $120,000.

Extraordinary profit opportunities

The new president, during his campaign, promised to increase tax incentives for new tourism-related businesses. But tourism is just one of the many, many areas where foreign investors have found great potential for profit.

Local expatriates are involved in all variety of endeavors. (We mentioned a handful earlier.) One of the easiest ways to start a business in Ecuador is to start a small import-export concern. This sort of endeavor gives you an ideal excuse to shop, for starters. Done on a small scale, buying merchandise in markets and shops overseas for resale back home can easily pay for your travel. Done on a larger scale, you can turn this kind of project into a steady income.

Ecuador's artisans are highly skilled. The markets are overflowing with handicrafts, jewelry, sweaters and the like…all on sale for bargain prices. From turquoise, silver, and leather goods to statuary, fine alpaca apparel, and magnificent textiles, you'll find an endless selection of products you might export.

But that is just one business option. The list of potential fields goes on and on, soft ecotourism, extreme sports, textile manufacturing and export, hospitality, real estate development, infrastructure provisioning for upcoming private telecommunications concessions, and much more.

In Ecuador: The Owner's Manual, we devote a full chapter to this subject, outlining not only the sectors where you'll find the most promise, but providing excellent resources that will help you launch a business in any field.

The contacts and practical advice you need

In fact, we've included contacts and how-to information for every chapter, filling this new edition of Ecuador: The Owner's Manual with the kind of firsthand, on-the-ground insights you can only gather if you live in a place. We were careful to include step-by-step guidelines and introductions…the useful things you won't find in a run-of-the-mill guidebook or an embassy's country report.

International Living has escorted more than 200 IL readers through Ecuador over the years…and we've answered our own front door to at least 100 more who have stopped by to say hello and ask questions.

So we know what most concerns people…what folks want to make sure they understand about Ecuador before they invest or make a move here.

And that's what we've included in our report everything from the subtleties of the visa rules…to the best hotels in our favorite locales…to the name and number for our favorite driver and guide (he knows his way around absolutely everywhere). Inside, you'll find invaluable details about--

How to invest in places that promise the best lifestyle…and the highest returns

Whether it's a mountain view or a beachside hideaway you're looking for, we'll pass along the names, phone numbers, and e-mail addresses for the contacts we've found most trustworthy and helpful in each of our favorite destinations.

If you're coming here to settle, you'll need a place to live. We'll tell you what, exactly, you can expect to pay in fees when you buy property in Ecuador…don't worry, it's seldom more than $1,000. And we'll explain how everything is calculated so there won't be any surprises.

How to find an attorney who can arrange everything from residency…to your home purchase…to setting up a business. We recommend three honest, efficient, and affordable lawyers you can be sure will take care of every detail and make navigating the bureaucracy a breeze.

Firsthand tales from the field stories from people who have already done what you're thinking about doing. Their hard-won advice from hacienda owners, shrimp-farm proprietors, tour operators, and resident retirees will save you time, money, and hours (maybe even weeks) of frustration…

Nine steps to buying property in Ecuador. We've spelled out in plain English exactly what you can expect when you buy…with notes about each step that gives you the inside, 'we did it, and here's what you need to watch out for' story.

The practical know-how for living in Ecuador

 Complete details about residency and citizenship, learn which of the six visas is right for you…plus how you get it, including sample forms so you'll see exactly what you'll need to fill out.

How much it really costs to live here. You'll find a sample monthly budget for a couple living in Quito on $1,595 per month and for another living in less-expensive Cuenca on a mere $700 per month, plus notes about what things cost, from cable TV to dentures.

What you should bring. Whether you're traveling for a week or six months, we've included our list of eight things you don't want to be without.

What it costs to use a phone…hire a maid, employ a gardener, visit a doctor or dentist…and much more.

Where to find the best medical and dental care and how much you can expect to pay to have your shoulder repaired or your teeth cleaned.

How to get full-coverage health insurance in Ecuador for $111.94 per month (for a couple), including 100% hospitalization benefits, 60% paid prescriptions, and visits to doctors and clinics for $5-$6, among other benefits.

How to get your pet to Ecuador it's easy. But you'll need to start the paperwork a few weeks before you go. Learn what to do first, what you'll want to have with you when you travel, and the key person to speak with if you bring your pet back to the States.

How to pay no taxes on your household goods…including brand-new appliances…and some firsthand advice about what to bring and what to leave at home if you're moving here full-time.

Traveler's tips you can't afford to ignore:

 Luxury hotels at boarding house prices…a smart shopper's handbook…and more

One of the very first resorts in Ecuador to cater to ecologically minded travelers is still, arguably, the best place in the country to go bird watching. We'll tell you where it is and how to book a stay for as little as $60 a night.

Where to find leather handbags…shoes and jackets…ponchos…hats…mittens… blankets…silver jewelry with lapis and turquoise…painted balsa wood birds… handmade flutes…and more. You'll learn where the best markets are, the best days to go…and the smartest way to negotiate.

A world-class spa resort at one-third what you'd pay for a comparable experience in Europe. Five-star meals. Gardens filled with flowers and hummingbirds. Spa treatments so divine you'll never resist a return visit.

The village where you should buy an original Panama Hat (it's a misnomer…they come from Ecuador). Here you get them straight from the families who weave them in their homes.

Three bargain hotels in Quito you won't read about in the guide books…and two more upscale places in town to lay your head, both of which offer extraordinary value for your dollar. Think $200-a-night room…yours for $50.

The best places to overnight in the Vilcabamba Valley the Valley of Longevity. One insider's pick costs just $8 a night.  An American breakfast in the morning? $2.

Get a taste of the Galapagos for one-tenth the price. This little island we'll tell you about is inhabited by albatrosses, boobies, and other rare birds. Eleven species of whales come to court in these waters each year, and you can see them between June and October. We'll tell you where to stay…and the best month to go.

A hotel in the shadow of Ecuador's highest peak, really a country ranch with a roaring fireplace, steam baths, horseback riding, and white-water rafting…where you can stay overnight for about $55 a couple. Oh, and that includes three sumptuous meals.

Business opportunities detailed

 From auto parts to snack food…there's a market for U.S. goods and services in Ecuador. Find out which four sectors show the most potential, and our take on how you might best position yourself to profit.

The names and contact information for 13 excellent resources to can help you launch your business in Ecuador.

The web address for our favorite on-line site about investing in Ecuador the more than 100 links posted there will prove invaluable, saving your time, energy, and frustration.

Think of us as your own, private consultants…

You'll find on the shelves in Barnes & Noble a short stack of guidebooks about traveling through Ecuador…and an on-line search invariably produces hundreds of websites with Ecuador content.

But we conceived Ecuador: The Owner's Manual as something quite different. It's not a guide meant for a general audience. It's designed, instead, to help you focus your search for the right place in the world and specifically, in Ecuador to relocate and invest.

It's like having a consultant walk you through your options and offer you advice. Only instead of paying somebody hundreds, even thousands of dollars for his time and expertise, you get the benefit of his experience and know-how for the price of a modest meal out.

International Living has been writing about Ecuador for nearly a decade now and over the years has developed an extensive network of contacts. We've been to the places we write about again and again noting changes, finding new advantages. We've long championed this country, never more enthusiastically than when economic crisis scared off so many other investors.

We have a history here, in other words. And that's makes us uniquely situated to bring you the kind of advice you simply won't hit upon anywhere else. In Ecuador: The Owner's Manual , you'll find--

Our Rolodex of contacts the name, phone number, email, and fax for every one of the people and resources we've found helpful over the years.

First-person accounts from people who have already invested in or moved to Ecuador it's the next-best-thing to chatting with these folks face-to-face. They'll tell you why they chose this country…what they most like (and dislike) about it…and what they wish they'd known before they jumped in. And we've included their contact information as well, so if you do want to talk to them in person, you'll know how to arrange a meeting.

Detailed, step-by-step guides to exactly what you're interested in doing buying property, getting residency, or launching a business, for instance including an outline of what to expect and what, specifically, you should watch out for.

A full description of the areas in Ecuador where you'll find the best opportunities for an affordable lifestyle…profitable investment…warm-weather escape…and cool-weather living…in other words: the places we think have the most to offer you in terms of value investing and quality of life - Quito, Cuenca, Vilcabamba, and beyond…

Ecuador is for the adventuresome and thoughtful

Clearly, we think Ecuador is worth your attention. But we should, perhaps, qualify our enthusiasm in one small way. If you're overly bothered by roads that have potholes. If you cannot bear to be in the sight of people less affluent than yourself. If you are at a loss when things do not function in exactly the way you're used to them functioning. Well, then, Ecuador may not be for you.

The people we know who seem the happiest here…and certainly the ones who are the most successful in their businesses…they are all adventuresome sorts. They take the unexpected in stride. They set out to explore the unknown.

And they are thoughtful…interested in their local communities. Some have begun studying the healing practices of rainforest tribes. Others are working with local craftsmen to help them develop products they can sell to a wider clientele. Still others volunteer in local schools or with environmental groups.

Ecuadorians are tremendously welcoming and friendly. And if you launch a new life here with enthusiasm for them and their nation, you'll find it's an easy, enjoyable, rewarding place to live.

Get in now…and beat the crowds

What's more, your timing is good. Now is a smart time to gain a foothold in Ecuador…before the rest of the world catches on to what a wonderful place it is. Like Costa Rica and Mexico before it, Ecuador will attract a growing number of foreign retirees.

And like the folks who invested early in those other countries (and have watched their properties appreciate in value as much as 10-times in the past decade)… an investment in Ecuador now could leave you well-positioned to profit in the years to come.

Baby boomers are approaching retirement at a time when the U.S. economy is sluggish, the bear market has pummeled their investment portfolios, and retirement pensions are no longer a sure thing. They will likely to face greater financial pressures in retirement than their parents did. And in greater numbers than ever, they'll seek out alternatives to merely scraping by in the U.S.

Ecuador will make…already makes…an ideal escape from America.

As expatriate Chuck Brown put it…

'I retired here in 1996 for a number of reasons all researched well and calculated reasons like low to no taxes…a non-invasive government…a pleasant, non-violent environment…and a park-like atmosphere in a college town. In addition, it's affordable (for what I consider a good lifestyle, I pay $700 a month).

'I visited Ecuador twice before I made my decision, so it isn't by whim I enjoy my life here. All in all, I have found that Ecuadorians are peace-loving, kick-back folks who like gringos, and who are usually pretty helpful, especially to foreigners. To this semi-retiree of 56 years, Ecuador offers exactly what I want.'

Here, here. We think you'll agree.

Sincerely,

Suzan Haskins and Dan Prescher
Quito, Ecuador

P.S. Each Friday, a few blocks south of us in Quito's La Floresta district, vendors take over the entire street, and offer fresh produce from miles around at amazing prices. On our first visit, we bought half a bushel of oranges, half a bushel of potatoes, bunches of cilantro, parsley, green onions, and bananas, a huge pineapple, half a dozen mangos, half a dozen papaya, and assorted chilies for salsa - all for less than $10. With prices like that, you can understand how $1,595 a month can bankroll a tycoon's lifestyle. If you're interested in living large on next to nothing, take advantage of the resources we've gathered on your behalf in Ecuador: The Owner's Manual. Guaranteed: You'll come away with a plan you can put into action immediately.