Ecuador Live the Life
Search
Translate This

phoneUSA 239-848-5876

phoneECUADOR 097-994-7640 | 07-210-0007


phoneinfo(at)livethelifeinecuador(dotted)com

Financing – Ecuador Real Estate

Anybody from around the world can purchase property in Ecuador. When it comes to foreign investment, there aren’t many restrictions, save perhaps in territories near the country’s borders. If you arrive in Ecuador with a valid visa and passport, you virtually have the same legal rights as Ecuadorian citizens, allowing you to purchase real estate with ease.

In recent years, the country’s housing market has been attracting a great deal of attention from international investors and retirees and has been described as “supercharged” by The New York Times. Apart from the ease of buying, the primary draws for international investors are:

    • Value for Money. Compared to other South American countries and the United States, real estate in Ecuador is significantly more affordable. Your dollar will go a long way here and the housing stock is generally of good quality as well. As for property taxes, they are considerably lower than the US’ and the country has no impact fees.
    • Cost of Living. While the economy in Ecuador has been improving, the cost of living has remained low – this includes everything from utilities to healthcare to dining out.
    • Economic Growth. Ecuador is a model for inclusive economic growth in the region. The economy here has been expanding consistently over the past few years and it’s a trend that’s projected to continue well into the future, particularly since the country has been investing heavily in infrastructure.
    • Hard Assets. Considering the devaluation of paper currency, smart investors have been opting to invest in hard or fixed assets instead – and there’s no better investment than irrigated land in Ecuador that’s ideal for food production, particularly as the price of food increases due to the severe drought in the western US.

 

Obtaining Financing

In Ecuador, buyers typically provide a down payment of 40 to 50 percent and banks’ interest rates range from 9.5 to 11.5 percent. The Ecuadorian mortgage market is growing, but it is still in its infancy as compared to, for example, the US’. For foreigners, the process can be difficult and confusing and options are still limited.

This is why we provide financing for those looking to purchase property in Ecuador, so you won’t have to go through the tedious process of dealing with foreign bank financing. A typical property of ours, for example, would be priced at around $120K to $150K. With a down payment of $60k to $75K that leaves the other half financed. $75k financed at 10% percent amounts to $7500 of interest per year, which would be $625 per month.

While 10 percent may seem high, bear in mind that compared to the US property taxes here are very low and most people don’t take out insurance. This means a typical 10 percent loan here would actually come out as less than six percent due to the lower taxes and no insurance.

Get in touch with us today using any of the numbers listed on this site if you have any questions or would simply like to discuss the financing services we can offer.