Just Another Day Looking at Rental Properties in Salinas Ecuador

This is the pattern we are seeing in Salinas Ecuador in the rental market. Just another day in Salinas...simply amazing...

                  

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!

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.

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. 

• Be Careful! Unscrupulous Rental Agents in Cuenca Ecuador

• 10 Warning Signs You May Be Paying Too Much for Rent in Ecuador

•  Rental Increases and Renting to Large Families in Ecuador

• 7 Tips to Look Out For BEFORE Renting in Cuenca

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!

Are Low Utility Costs a Thing of the Past in Cuenca Ecuador?

Ok, ok, we understand, normal, gradual, sluggish, run of the mill INFLATION. But when your bill doubles and then doubles again? The rumor mill around Cuenca is saying they ran out of money for the Tranvia project and are now doubling household utilities so they can complete the project.  Some folks may not like that, especially if the Tranvia line/route has put them out of business, or if they aren’t going to be using the service.

Tranvia in Cuenca Ecuador

We remember the days not too long ago when everyone used to say that your water bill would be 'cheap' or about $9.   Slowly it floated to about $30, now our $30 dollar water bill has become $70 to $80 and even $100 over night. We cannot tout our cost of living being $1,000 dollars a month any longer. We now spend, with higher food costs and now with the utilities doubling, $1,200 a month.
 

Unfortunately, we pay more for water usage in Cuenca Ecuador than we did in the states…granted, that was 5 years ago, but still, the point is the water bill costs just keep going higher and higher. We are five people so that does account for some of the higher water bill.  Still though, even with the second upped cost it should be about $40 bucks, not $80-$100.  
 

Just giving you a heads up for when you get here and want to rent a house or apartment in Cuenca. When the landlord or the real estate agent tells you the water bill will be $12 for two people, that’s not true anymore. More like $25 to $30 for water and the same for electricity…and that’s for two people. I know still sounds cheeeep, but not if you were here two years ago before they tripled the utility services.  Is the trend your friend?  Not here.



Until we write again…
 

If you liked this article, we think you might like these too.

• Nitty-gritty of Using Propane Gas: Pros and Cons

• Brandon Explains the Basics of Using the Calefon Water Heater

• Costs of Setting-up House (high-end and budget) in Cuenca 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. We just adventured throughout the country of Panama for five weeks! Come along and enjoy some of our experiences with us!

Beautiful 3-Bed Cuenca Apt. $350 AND Quito Country House $400

Beautiful Cuenca Apartment

This 150M (1,600') "bright and open feel" apartment is located in a nice big house building with three apartments. The home is located by the Monay

Shopping Mall and the Gran Aki grocery store. The apartment consists of 3 bedrooms with beautiful hardwoods throughout the home. Asking $350.

Another view of the Living area

 ***

Quito Ecuador Country House!

Older, but well kept house out in the country, situated on 600M of land with avocado and lemon trees. Four kilometers from Carolina Parque in North Quito. 

The house has 3 bedrooms and 1-1/2 baths and has a big living room/dining; there is also a BBQ area and shed. asking $400.

***

These homes are available today! We work hard to find you the best value deals according to size, location and price and all you have to do is tell us what you want and need in a rental. If you are interested in a rental abroad, take a look at our Assistance Packages and choose the one that fits your needs; and we'll provide the priceless protection for your smooth transition abroad from Gringo Good Samaritans.

Best Rental Options in Quito Ecuador Today!

Rentals in Quito Ecuador!

3/2 beautiful Quito Apartment (120M) located in North Quito.  The master has a jacuzzi tub and there is a parking garage for your car with electric door, plus a terraza! The apartment has pretty curtains throughout the whole apartment. Asking $400. Remember, all prices are negotiable. And if you want, we'll do the negotiating, translating, and we'll even make sure all the ducks are in a perfect row with the contract.

Nice 3/3 (Estranar Casa) in gated community with pool. This home with nice American style finishes is located in Los Chillos, a suburb about 30 minutes outside of Quito proper. The home boasts 3 bedrooms plus a studio. (125M) All 3 bedrooms have their own bath. Kitchen has a little breakfast nook for eating. There is also a social bath. Home has Living, dining room, and an area outside for BBQing.  Asking $500 but it is NEGOTIABLE.

We have already scouted for the best rental options today in Quito and here they are.  

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

3 Ways Going Local Helps Ecuador!

1. Going local spreads Commerce throughout the Ecuadorian population and not just for the tourist industry and real estate services. There’s always going to be tourists and that is what tourist services and pricing is all about. However, should a permanent resident of Ecuador and the LOCALS pay tourist pricing too?
 

EXAMPLE: When foreign residents go local it spreads money throughout the entire population, also helping out the small Ecuadorian business establishments and indigenous sellers and services which in turn does two things for Ecuador: 1) establishes good relations with the local community, and 2) gains respect from the Ecuadorians towards the foreigners.
 

Both values go a long way to keep Cuenca and Ecuador a nice and pleasant place to live in for everyone. Pricing the local folks out of their “cost of living market” will eventually cause resentment and animosity from the local community who do not work in the tourism and real estate industries; also it causes more crime and violence against the foreigners. Does that sound like somewhere you would want to live? 

Bottom line: Let the tourists be tourists and if you’re a resident then behave like someone who cares about the local community and stop acting like a rich tourist. 
 

2.  Negotiate and Don’t Accept Gringo Gouging. There’s no such thing as “gringo tax”; it is a made up term by the wealthier gringos so they won’t feel so bad when they are gringoed. By the way, definition of “tax” means duty; it is NOT a duty to overpay just because you’re a gringo.
 

When permanent residents live like the locals it establishes respectful relationships within the local community because the permanent resident will be establishing their relationship based on respect rather than based on money and greed. We have to remember, the root cause of poor business ethics is almost always based on greed. In the long run permanent residents having good business relationships with the locals, provides a better and more vibrant living environment for everyone. 



And so we can see then that a gringo’s attitude of simply “shrugging their shoulders” and paying whatever price is quoted definitely causes greed with some of the Ecuadorian business owners and its services such as tourism and real estate and that greed is what pushes prices up! We also believe it can cause the local people to feel disrespect towards the gringos. It's happening today in Cuenca Ecuador.


Greed also causes bad business principles that establish
pitiful precedents within the Ecuador real estate markets such as charging three
deposits up front. Some gringos, because of their nonchalant view towards getting gringo gouged and behaving as pushovers to the gringo price structures and principles, cause the Ecuadorians to be greedy.  



In the short run it may seem like the noble thing to do just because you have the money, but in the long run, if foreigners simply overpay for everything such as rent, purchasing a home, food, restaurants, doctor visits, tourist services, etc, it will induce dislike among many in the local community that are not profiteering from the gringo-gouging game!   



The profiteers will love you (but not really) and the wage earners and small business owners will dislike you. And there are far more wage earners and mom and pop businesses in Ecuador than profiteers.


3. When gringos integrate within the local community it is clearly a sign of respect towards the local people and you are more apt to be accepted as one of them. Even though we are foreign and different in some ways, we will receive the same price structure as they do. We know this to be true because we have been doing it and living it for almost four years right here in Cuenca! 



What immersion and integration does is: saves you money, and because you are accepted into the community living here, it will feel more like home, and you won't want to leave. 



NOTE: This article applies to living anywhere in South America where gringos are thought to be "rich" and "pushovers" for a new pricing structure and principles by the local profiteers just because they think they can get away with it. 



If going local interests you then you'll be good to go with the DIY Cuenca or Quito or Ecuador Coast Landing Guide in your hands!



We're an Expat Family of Five Living Frugal, Healthy and Happy in Cuenca Ecuador! Enjoy the Discover Cuenca blog!

10 Warning Signs You MAY Be Paying Too Much for Rent in Cuenca Ecuador

 

Some of you might think you got a great deal on your rental and maybe you have. However, we know that many expats in Ecuador are overpaying for their rental house or apartment. So consider the list below to see if you may be getting gringoed on your rent.

1. You procured your rental through an English speaking/ Ecuadorian real estate agent or online.  


2. You asked for any one of these amenities in your new place: views 2) elevator 3) by the river 4) near shopping 5) walk to Supermaxi.


3. You took the first price that was quoted and did not negotiate.


4. Your new place is a furnished one bedroom suite. (Tourist rental) 


5. Your landlord raised the rent after one year. (Illegal in Ecuador)


6. You paid three months rent upfront. (The locals do not do this)


7. You compared the Ecuadorian rental price to what you WERE PAYING in the u.s.


8. You brought your u.s standards of living with you.


9. You simply don’t care how much your rent is.


10. You’re paying more than $400 for an unfurnished 3-bedroom 3-bath house, or you are paying more than $350 for an unfurnished 3 bedroom 3 bath apartment that does not have 24 hour security or elevator.

None of these are a guarantee that you are getting gringoed, but we think you should use it as a red flag, and do some more due diligence.   



Are you paying too much for your rent?



We're an Expat Family of Five Living Frugal, Healthy and Happy in Cuenca Ecuador! Enjoy the blog!

Should You Move to Ecuador to Live in Luxury?

With all the hubbub on the net about how one can live in Ecuador and Cuenca for $800 to $2000 a month (so which is it?) I can see how some folks would reason: "Hey if you can live on that, then honey, we could probably live in LUXURY on twice that much or a little more."

The ‘problem’ with that idea is that you’re not the only one that has thought of that. We’ve heard of people living on $4600 a month in Cuenca!!



And as a parallel example, if you’ve ever participated in an online auction of any kind, then you know that when there are too many other bidders that will pay more, the price spirals out of control.



On top of that, the early bidders know even as the price goes higher and higher, that the item is over bid! It’s just not worth that much. But try telling that to the late bidders who have decided that they want it and must have it!



Following the above reasoning, “honey, that $600-$800 apartment or house must be – luxury living”. Boy are you in for a big surprise. Those places are no more luxury than they were just a short time ago when they were going for $300-$500.



For an example, $500 to $750 rent for a 2/2 or 3/2 is going to be a very basic, small, freshly painted apartment (900 sq ft to 1500 sq ft of living space) and it will not be luxurious.

Everything is just basic, so why the high rent? Most likely a renter is paying for…24 hour security, dime a dozen views, being a gringo, etc. etc.



I vote for a ‘reverse bidding’ process. We all show up and each one of us offers lower and lower rental prices. Wouldn’t that be fun? (We're already doing it, will you help us?)  Farfetched you say? What do you think is happening when a bubble pops?



“Why do so many gringos leave Cuenca?” Asked the latest taxi driver. Our regular readers know we have a few ‘insider’ conversations with taxi drivers—like this one.



“Oh, you know, they probably believed the Media Hype, and came here to “live in luxury”, hoping they could get what they had in the States, but cheaper”. Shaking our heads: “you know it just isn’t so”. “We both know that Ecuador and Cuenca are nice, but it’s not North America”.

Many North Americans are moving to Cuenca thinking they are going to live in luxury for less than they can somewhere in the US…but unfortunately to have the luxury living that North Americans speak of in Cuenca means sky-high rental prices that are geared to the foreigners. BTW, the Ecuadorians who have been living in the northern country for 15 and 20 years and are moving back to Cuenca consider themselves gringos.

We regularly hear of people that embrace this “luxury living” idea, and find out that they’re overpaying on everything, all the way down to $15 for a $6 chicken. Do you think these people call their relatives back in the u.s. and say “yes, we’re doing great here in Ecuador, we are frequently seen as an ATM machine and we’re overpaying for everything”.

It’s mostly people from the larger metro areas that buy into this philosophy. In reality, if they would just branch out a bit from their large metro area, within the u.s. there are plenty of lower cost slower paced areas, such as in the Midwest and the South.

Not surprisingly there are many wonderful u.s. cities where home prices have not gotten too out of hand, or they have come down. See the real estate chapter in the updated DIY Cuenca Landing Guide to see what we’re talking about.

What? Did you really think you were going to swap a u.s. metro area for Cuenca Ecuador for less money? You can do that, but you’re not getting what you left behind.

To get the inside scoop on what’s happening in Cuenca Ecuador, save time and money and learn to live well see the DIY Cuenca Landing Guide.

$250 Town Home Rental in Cuenca Ecuador!

This town home for $250 per month is like the $230 per month town home except this one has a small bonus room off of the covered laundry area instead of green space, and it has ceramic tiles on the bottom level instead of simulated hard wood, and it has curtain type shades on every window. They are both in the same private, gated community and have a guardian/caretaker for an additional $25 per month. I also added different music in the background on this one for a change of pace...:-)   so sit back and enjoy the video home tour.  For more info about this town home or the villa for rent for $300 click here for the photos and specifications.



                    

Furnished Rental in Salinas Ecuador: Rent by the Week or Month

This is one of the rentals that we had an opportunity to take photos and video of.  It's off season right now (May) and so there are more rentals available. We still think this particular rental is asking too much. Remember: always negotiate the price of rental you are considering, whether you live in Salinas or Cuenca. Be a wise and diligent gringo.