Moving abroad is so relative, depending on where you happen to be in life. For example someone spending $50k per year in the states and is looking at spending $30k living in a developing country sounds like a great idea. To a frugal family living in a developing country and spending $1,000 per month with a 35% increase (over a 5 year period) to $1,350 or more is huge. It's all relative.
We're an Expat Family of Five, Living Frugal, Healthy and Happy Abroad. We lived in Cuenca Ecuador for five years and now we are in Salinas Ecuador where our adventure continues.We vlog several times per week where we share crucial insights and every day experiences to help others see what its really like to live in a Latin American country.
Welcome to Gringo Good Samaritans, integrated with our 8 years of living in Cuenca Ecuador and traveling the world. We create informative videos and articles helping people come to awareness of what's happening in our world so they can enjoy their retire early lifestyle with their families, healthy, happy and free!
Showing posts with label cost of living ecuador. Show all posts
Showing posts with label cost of living ecuador. Show all posts
Sunday, October 23, 2016
Saturday, May 14, 2016
The Vicious Cycle of Rental Inflation in Cuenca Ecuador
The ‘average’ foreigner, will google “Ecuador Inflation” and think he’s hit the jackpot. “Aha”, he/she will say, “look here, inflation between 2% and 10%. That doesn’t sound so bad”.
Well those of us that have graduated to above average, just because we’ve been thinking independently for many years, already know that statistics, well, don’t show the complete picture.
Here’s why:
The above chart shows ALL OF ECUADOR. Yes there are many places within Ecuador that are completely devoid of foreigners. No Gringos, no Europeans, no Australians, no developed western world citizens.
And if a person ventures out into any of these virgin areas he/she will be first surprised, then astonished and amazed. Wow, I can still rent a house for $250 here. And $300 gets me a large, no make that huge family sized house. According to these areas the inflation rate is probably 2% or less.
But but but…there are no westerners there. You’re all alone with the Ecuadorians. No gringo night, gringo meetings, gringo meetups, gringo bars, gringo restaurants, bi-lingual facilitators (they’re also gringos), bi-lingual real estate agents, etc. etc. you get the picture. No one here is comparing any prices to “back home”. Everyone here knows what the local rate is because that’s all there is.
Now, in 2007 International Living and others, started pumping the best city to retire in the world. Note, they did not say “the best country in the world” to retire to. They did not pick “Ecuador”. They chose, TAH DAH…CUENCA. That right there throws your chart out of whack.
In contrast to the foreigner free areas of Ecuador, Cuenca is inundated with foreigners. So much so, that International Living apparently decided to change the flow and name LOJA the best city to retire to. Someone decided there were too many foreigners already in Cuenca.
DISPELLING THE 1% MYTH....Again
We wrote about the actual figures of foreigners in Cuenca here. (please read that post and then come back to this article.)
I don’t think anything needs to be added, except that, as the song goes: One bad apple spoils the whole bunch. Not trying to say foreigners are bad, not at all. Just making the point that it’s not the number that matters, it’s the result of who they are and what and how they do things.
Hence the comparison above between foreigner infested areas like Cuenca, and let’s call the other areas, virgin areas. I have to ask: why would anyone waste their time defending “gringos”. As if they’re on the witness stand? Figures don’t lie but liars figure.
Why is it that there seems to be a persistent attempt at dispelling all the facts by simple statements like, gringos are not to blame; or its only 1% it can’t be so. They say, "You’re wrong". It seems that there are some that have a vested interest in doing this. And low and behold, they’re usually in the real estate industry. They’re pretty easy to spot. Moving on…moving on...moving on...
Some quick math:
Local rental price in 2011= $250-$300
(we’re still paying that in 2016)
Gringo (Furnished) prices 2011= $600-$800 and up to $1000
Local rental prices in 2016= $500-$700
(A 100% increase or more in five years, which translates to 20% per year rental inflation from local pricing.)
Gringo (Furnished) rental prices 2016= $700-$1400
There are lower prices but usually for very small apartments
The “average” gringo price in 2011 was $800 (these figures are approximate taken by adding the lower and highest listed above and dividing by two)
The “average gringo price in 2016 is $1050.
An increase of $250 which is 31%. Divided over five years, is roughly 6% per year. So you see, statistics tell a picture, but…not the whole story, see? Even though prices have receded recently about 5%-10%, that’s a minuscule amount from the lofty prices foreigners were/are naively paying.
Did you know it was only 5 years ago (2011) when the N. American could come to Ecuador and rent a nice three or four bedroom home with a yard for just $250 dollars! Yes, with a small yard! In fact this is what we paid and now pay for a one story (yes ones story) 3-bed 3-bath, detached home, plus office, dining, living, kitchen, patio and yard, views of Mountains and river very near and we still pay $250. Cuenca’s rents (value comparisons) have gone past the double mark….and we’re shaking our heads.
***disclaimer***the above figures are approximates and are listed for the purpose of conveying the idea of the article. There are many variables that go into the price of a rental including but not limited to, whether bldg. has an elevator, square footage, foreign owners or local owners, etc. etc. We find that houses are more expensive than apartments.
Until we write again, take a look at these educational articles to help you get an idea, before you get here, of what to expect and then be prepared for life abroad! These articles could apply to living anywhere abroad, not just Ecuador.
We're an Expat Family of Five, Living Frugal, Healthy and Happy Abroad. We live in Cuenca, Ecuador and travel the Ecuador coast whenever we get a chance. Come along and enjoy some of our experiences with us!
Well those of us that have graduated to above average, just because we’ve been thinking independently for many years, already know that statistics, well, don’t show the complete picture.
 |
| 2006 thru 2016 Inflation Chart for the COUNTRY of Ecuador |
Here’s why:
The above chart shows ALL OF ECUADOR. Yes there are many places within Ecuador that are completely devoid of foreigners. No Gringos, no Europeans, no Australians, no developed western world citizens.
And if a person ventures out into any of these virgin areas he/she will be first surprised, then astonished and amazed. Wow, I can still rent a house for $250 here. And $300 gets me a large, no make that huge family sized house. According to these areas the inflation rate is probably 2% or less.
But but but…there are no westerners there. You’re all alone with the Ecuadorians. No gringo night, gringo meetings, gringo meetups, gringo bars, gringo restaurants, bi-lingual facilitators (they’re also gringos), bi-lingual real estate agents, etc. etc. you get the picture. No one here is comparing any prices to “back home”. Everyone here knows what the local rate is because that’s all there is.
Now, in 2007 International Living and others, started pumping the best city to retire in the world. Note, they did not say “the best country in the world” to retire to. They did not pick “Ecuador”. They chose, TAH DAH…CUENCA. That right there throws your chart out of whack.
In contrast to the foreigner free areas of Ecuador, Cuenca is inundated with foreigners. So much so, that International Living apparently decided to change the flow and name LOJA the best city to retire to. Someone decided there were too many foreigners already in Cuenca.
DISPELLING THE 1% MYTH....Again
We wrote about the actual figures of foreigners in Cuenca here. (please read that post and then come back to this article.)
I don’t think anything needs to be added, except that, as the song goes: One bad apple spoils the whole bunch. Not trying to say foreigners are bad, not at all. Just making the point that it’s not the number that matters, it’s the result of who they are and what and how they do things.
Hence the comparison above between foreigner infested areas like Cuenca, and let’s call the other areas, virgin areas. I have to ask: why would anyone waste their time defending “gringos”. As if they’re on the witness stand? Figures don’t lie but liars figure.
Why is it that there seems to be a persistent attempt at dispelling all the facts by simple statements like, gringos are not to blame; or its only 1% it can’t be so. They say, "You’re wrong". It seems that there are some that have a vested interest in doing this. And low and behold, they’re usually in the real estate industry. They’re pretty easy to spot. Moving on…moving on...moving on...
Some quick math:
Local rental price in 2011= $250-$300
(we’re still paying that in 2016)
Gringo (Furnished) prices 2011= $600-$800 and up to $1000
Local rental prices in 2016= $500-$700
(A 100% increase or more in five years, which translates to 20% per year rental inflation from local pricing.)
Gringo (Furnished) rental prices 2016= $700-$1400
There are lower prices but usually for very small apartments
The “average” gringo price in 2011 was $800 (these figures are approximate taken by adding the lower and highest listed above and dividing by two)
The “average gringo price in 2016 is $1050.
An increase of $250 which is 31%. Divided over five years, is roughly 6% per year. So you see, statistics tell a picture, but…not the whole story, see? Even though prices have receded recently about 5%-10%, that’s a minuscule amount from the lofty prices foreigners were/are naively paying.
Did you know it was only 5 years ago (2011) when the N. American could come to Ecuador and rent a nice three or four bedroom home with a yard for just $250 dollars! Yes, with a small yard! In fact this is what we paid and now pay for a one story (yes ones story) 3-bed 3-bath, detached home, plus office, dining, living, kitchen, patio and yard, views of Mountains and river very near and we still pay $250. Cuenca’s rents (value comparisons) have gone past the double mark….and we’re shaking our heads.
***disclaimer***the above figures are approximates and are listed for the purpose of conveying the idea of the article. There are many variables that go into the price of a rental including but not limited to, whether bldg. has an elevator, square footage, foreign owners or local owners, etc. etc. We find that houses are more expensive than apartments.
Until we write again, take a look at these educational articles to help you get an idea, before you get here, of what to expect and then be prepared for life abroad! These articles could apply to living anywhere abroad, not just Ecuador.
We're an Expat Family of Five, Living Frugal, Healthy and Happy Abroad. We live in Cuenca, Ecuador and travel the Ecuador coast whenever we get a chance. Come along and enjoy some of our experiences with us!
Friday, January 22, 2016
NOTICE: New Ecuador Residency Visa Fees - Effective January 1, 2016
It has come to our attention from one of our long time followers that there are new government fees attached to the Residency Visa. Please take note.
As is the case in many other countries at this time (including the US and Canada), sources say there is apparently in Ecuador a shortfall of funds for the Government budget (i.e. Ecuador is currently selling its oil at a LOSS at this time), and so the Government of Ecuador has effective for 2016 RAISED the Government Fee for the Residency Visa stamp to $550 per adult person and to $250 per Minor Child (from the previously indicated 2015 level of $350 per adult person and $0 per minor child).
Please note: There is NO ADDITIONAL Government Fee being charged by Ecuador for your Cedula National ID Card itself.
***
If you have been reading previous articles on our blog then you will also know that the Ecuador utilities, namely electric and water have doubled in the last year and tripled in the last 3 years. Food prices have gone up because of higher import taxes and at the beginning of last year, all flights to and from Ecuador have an added 20% tax as well. And finally, rental prices have doubled in paradise.
Conclusion: The once touted cheap paradise is increasingly becoming more expensive. We have been told just recently that Peru is now cheaper than Ecuador. Just wanting to give everyone a heads up on what’s happening here.
Related Articles
We're an Expat Family of Five, Living Frugal, Healthy and Happy Abroad. We live in Cuenca, Ecuador and travel the Ecuador coast whenever we get a chance. We just adventured throughout the country of Panama for five weeks! Come along and enjoy some of our experiences with us!
As is the case in many other countries at this time (including the US and Canada), sources say there is apparently in Ecuador a shortfall of funds for the Government budget (i.e. Ecuador is currently selling its oil at a LOSS at this time), and so the Government of Ecuador has effective for 2016 RAISED the Government Fee for the Residency Visa stamp to $550 per adult person and to $250 per Minor Child (from the previously indicated 2015 level of $350 per adult person and $0 per minor child).
Please note: There is NO ADDITIONAL Government Fee being charged by Ecuador for your Cedula National ID Card itself.
***
If you have been reading previous articles on our blog then you will also know that the Ecuador utilities, namely electric and water have doubled in the last year and tripled in the last 3 years. Food prices have gone up because of higher import taxes and at the beginning of last year, all flights to and from Ecuador have an added 20% tax as well. And finally, rental prices have doubled in paradise.
Conclusion: The once touted cheap paradise is increasingly becoming more expensive. We have been told just recently that Peru is now cheaper than Ecuador. Just wanting to give everyone a heads up on what’s happening here.
Related Articles
We're an Expat Family of Five, Living Frugal, Healthy and Happy Abroad. We live in Cuenca, Ecuador and travel the Ecuador coast whenever we get a chance. We just adventured throughout the country of Panama for five weeks! Come along and enjoy some of our experiences with us!
Monday, August 31, 2015
Panama Is NOT (Necessarily) Better Place to Retire than Ecuador, According to Us!
A question we often are asked, for those who know we explored Panama is, “Did you like Panama better than Ecuador?” But you see, our opinion doesn’t matter because we’re us and you’re you. We’re different people with different requirements and you’re you with your requirements. It’s ALL VERY relative depending on who you are and your particular lifestyle desires and requirements. However, we can still let you know our opinions but please don’t write them in stone unless it’s an actual fact.
In many respects Ecuador is more livable (not better) according to our needs and circumstances; however, someone else might find Panama to be just what they need according to their circumstances. Everyone has their own needs and circumstances that consequently will require different degrees and standards of living conditions, which cannot be found in any one-paradise that happens to be pumped that month! That’s why taking someone else’s opinions as fact, no matter how popular that travel magazine might be, is a really bad idea.
The word “better” is often thrown around loosely with people who like to compare countries but perhaps they aren’t thinking about “better for whom”? You’ll read on forums where users often say one country is better than another but according to whom? So, just remember that when you get all excited reading about a country being better than another, whether it’s on a forum or in an online travel magazine that they are talking about their own personal subjective opinion, not fact.
If you are serious about putting down roots in a city abroad, go visit first and do NOT believe all the hustlers. As you know, one of the BIG issues we have with travel abroad media is they pipe everyone into the same category. For instance, just because a writer thinks the weather in Ecuador or Portugal is great, they also think it must be great for everyone else too, which clearly is not so.
I absolutely love the tropical weather of Panama. Sure it gets hot there, but I like tropical climates way more than the Andes climate, but that’s just me; it’s my personal opinion. Someone else might not be able to bear under the Equatorial heat and humidity of Panama. So then how can anyone say where the best place to retire is? See?
So, with all of that out of the way, here is some of our opinions, experiences and observations about Panama compared with living in Ecuador.
There are many nice towns, outside of Panama City that one could surely set up roots and live a comfortable lifestyle on less, just about the same as in Cuenca. But living for less usually means going without the standards of living that most folks have become accustomed to in the U.S or Europe.
We’ve said from the beginning and will continue to say, “Don’t move somewhere just because it’s cheap”. It’s not a good enough reason to uproot your whole life and lifestyle that you are so accustom to because in most instances, if you go move somewhere just because it’s cheap, you’ll end up NOT liking it too much.
Travel somewhere because you want the adventure” or “move somewhere because you already have roots there” or “you already did the research”, but to simply pick up and move just because you’re being told it’s cheaper than where you are now is not a suitable enough reason for drastically changing your lifestyle. The important thing to remember is, what’s in it for the pumper? There are many real estate pumpers and seminar pumpers on the internet.
Do you know how taxing and time-consuming it is just to move your household and family from one neighborhood to another in the same city you live in is? It’s very stressful and takes adjustments just being in a new area of the city you already live in. Imagine moving clear across the world in a new continent with a totally different way of life!! Now that’s something to think about.
And remember, a two or three month vacation, living as a tourist is much different than actually residing somewhere and being a resident abroad.
There are writers that will tell you what they like about Ecuador and there are writers that will tell you what they like about Panama and that’s great! Take it all in and absorb it all into your mental system, but in the end, you are the one who will need to experience it all for yourself anyway.
One person’s paradise is Panama, another person’s paradise is Ecuador and another person’s paradise is…staying exactly where they are. We will continue to give you the facts as we experience them, without the gloss and pump.
Until we write again, have a great adventure wherever you decide to move to abroad!
If you liked this article, we think you'll also like these.
We're an Expat Family of Five, Living Frugal, Healthy and Happy Abroad. We live in Cuenca, Ecuador and travel the Ecuador coast whenever we get a chance. We just adventured throughout the country of Panama for five weeks! Come along and enjoy some of our experiences with us!
 |
| Bike, walking, jogging trail Panama City, Panama |
In many respects Ecuador is more livable (not better) according to our needs and circumstances; however, someone else might find Panama to be just what they need according to their circumstances. Everyone has their own needs and circumstances that consequently will require different degrees and standards of living conditions, which cannot be found in any one-paradise that happens to be pumped that month! That’s why taking someone else’s opinions as fact, no matter how popular that travel magazine might be, is a really bad idea.
The word “better” is often thrown around loosely with people who like to compare countries but perhaps they aren’t thinking about “better for whom”? You’ll read on forums where users often say one country is better than another but according to whom? So, just remember that when you get all excited reading about a country being better than another, whether it’s on a forum or in an online travel magazine that they are talking about their own personal subjective opinion, not fact.
 |
| La Carolina Parque, Quito Ecuador |
If you are serious about putting down roots in a city abroad, go visit first and do NOT believe all the hustlers. As you know, one of the BIG issues we have with travel abroad media is they pipe everyone into the same category. For instance, just because a writer thinks the weather in Ecuador or Portugal is great, they also think it must be great for everyone else too, which clearly is not so.
I absolutely love the tropical weather of Panama. Sure it gets hot there, but I like tropical climates way more than the Andes climate, but that’s just me; it’s my personal opinion. Someone else might not be able to bear under the Equatorial heat and humidity of Panama. So then how can anyone say where the best place to retire is? See?
So, with all of that out of the way, here is some of our opinions, experiences and observations about Panama compared with living in Ecuador.
There are many nice towns, outside of Panama City that one could surely set up roots and live a comfortable lifestyle on less, just about the same as in Cuenca. But living for less usually means going without the standards of living that most folks have become accustomed to in the U.S or Europe.
 |
| David, Panama |
We’ve said from the beginning and will continue to say, “Don’t move somewhere just because it’s cheap”. It’s not a good enough reason to uproot your whole life and lifestyle that you are so accustom to because in most instances, if you go move somewhere just because it’s cheap, you’ll end up NOT liking it too much.
Travel somewhere because you want the adventure” or “move somewhere because you already have roots there” or “you already did the research”, but to simply pick up and move just because you’re being told it’s cheaper than where you are now is not a suitable enough reason for drastically changing your lifestyle. The important thing to remember is, what’s in it for the pumper? There are many real estate pumpers and seminar pumpers on the internet.
 |
| Cuenca Ecuador - Turi view |
Do you know how taxing and time-consuming it is just to move your household and family from one neighborhood to another in the same city you live in is? It’s very stressful and takes adjustments just being in a new area of the city you already live in. Imagine moving clear across the world in a new continent with a totally different way of life!! Now that’s something to think about.
And remember, a two or three month vacation, living as a tourist is much different than actually residing somewhere and being a resident abroad.
 |
| Puerto Armuelles, Panama |
There are writers that will tell you what they like about Ecuador and there are writers that will tell you what they like about Panama and that’s great! Take it all in and absorb it all into your mental system, but in the end, you are the one who will need to experience it all for yourself anyway.
One person’s paradise is Panama, another person’s paradise is Ecuador and another person’s paradise is…staying exactly where they are. We will continue to give you the facts as we experience them, without the gloss and pump.
Until we write again, have a great adventure wherever you decide to move to abroad!
If you liked this article, we think you'll also like these.
- The Fallacy of Real Estate Purchasing Power and the Fickleness of Cheap Edens
- The Minimalists Guide to Living Well on Less Abroad
We're an Expat Family of Five, Living Frugal, Healthy and Happy Abroad. We live in Cuenca, Ecuador and travel the Ecuador coast whenever we get a chance. We just adventured throughout the country of Panama for five weeks! Come along and enjoy some of our experiences with us!
Friday, May 22, 2015
More GREAT RENTAL FINDS in Ecuador! Available Now!
These rental finds are available now; we have the contact information; if you want, we can call them for you; we can negotiate for you; and we'll make sure that you are getting a fair rental deal with no gouging just because you are a gringo/foreigner! Today we're focusing on Quito!
Quito Ecuador: 4 bedroom (150M) apartment on the way to Los Chillos in Quito; this apartment is not located in the hustle bustle of the city, yet still near to shopping and buses. the walls are painted light tan and white with nice trimming, plus there is a fireplace. Bright and airy. asking price $350.
North Quito (good area) Ecuador: 3 bedroom 2 full baths (150M) apartment in a tower building. asking $400 AND this PRICE inlcudes the monthly maintenance fee and water!! However, we never take the asking price... you know (wink, wink)
People always say to us that Quito is expensive. Yes, it can be expensive when you go to the gringo portals to look for the rental deals! We wade through all the over-priced tourist stuff.
next...
Quito by the NEW Airport: 2/1 nice detached house with amazing green areas (450M) for playing. American kitchen. BBQ area (see photo) and just 4 minutes to the new Quito airport. Asking $400. This seems a bit high. Want help negotiating a good rental deal? You know how to get a hold of us.
We scout and negotiate, working to find you the best rental deals in Ecuador. Sign up (top right) to receive some of our latest good deal rentals in Ecuador available now!
Priceless protection for your smooth transition abroad from Gringo Good Samaritans. http://www.gringogoodsamaritans.com
Quito Ecuador: 4 bedroom (150M) apartment on the way to Los Chillos in Quito; this apartment is not located in the hustle bustle of the city, yet still near to shopping and buses. the walls are painted light tan and white with nice trimming, plus there is a fireplace. Bright and airy. asking price $350.
North Quito (good area) Ecuador: 3 bedroom 2 full baths (150M) apartment in a tower building. asking $400 AND this PRICE inlcudes the monthly maintenance fee and water!! However, we never take the asking price... you know (wink, wink)
People always say to us that Quito is expensive. Yes, it can be expensive when you go to the gringo portals to look for the rental deals! We wade through all the over-priced tourist stuff.
next...
Quito by the NEW Airport: 2/1 nice detached house with amazing green areas (450M) for playing. American kitchen. BBQ area (see photo) and just 4 minutes to the new Quito airport. Asking $400. This seems a bit high. Want help negotiating a good rental deal? You know how to get a hold of us.
Priceless protection for your smooth transition abroad from Gringo Good Samaritans. http://www.gringogoodsamaritans.com
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