We're Back in Salinas Beach!

We just can't stay away from the beach!! Salinas is one of the closest beaches to Cuenca. We feel comfortable and secure in Salinas. We've been here before and know our way around so we chose it for a five day mini-vacation. Though we're still going to be checking out the North Ecuador beaches in the future. 



Frank and I we're saying how in the last 14 months of living in Cuenca we've been to the beach 3 times now and that is because it is affordable! The buses are cheap and comfortable to get here, and if you stay in a hostel or hotel one row back from the beach it is much better on the frugal-minded pocket book as well! You'll notice in the videos its high season now.



                   

Five Major Cities Being Considered for Fuel Subsidy

A few weeks ago we posted about the 40% discount on
fuel that Ecuador’s president has offered major airlines. Here are the
tentative five cities that will be given the fuel subsidies. If you live near
these cities, and the fuel grants go through, you’re probably going to be seeing some major flight discounts to Quito, Cuenca, Guayaquil and
Galapagos Islands.  

Five routes being considered for fuel subsidy

August 28, 2012
--  http://unvrso.ec/0003UF3

The Production Sector Council will
be responsible for prioritizing new air routes to enter the incentive scheme
announced by the government earlier this month.



The idea is to grant a subsidy of 40% of a gallon of fuel for three years with
the airline to open a nonexistent path that would connect directly to Ecuador.



An official of the Ministry of Production Coordinator said the tentative routes
being considered for this benefit would be Los Angeles (USA), Vancouver
(Canada), Frankfurt (Germany), Rome (Italy) and Sao Paulo (Brazil).



The grant will be given to the company that the new route aperture and keep the
connection with at least three times a week (round trip).



The viability of this benefit will be through an executive order, although the
Ministry of Production has not given details of the date on which the plan
would start.



Juan Carlos Torres, vice president of the Association of National Airlines (Adena),
said that at the moment do not know details of the proposal and what the
mechanism is analyzed to prioritize the routes that have the fuel subsidy.



The union representative said that in aviation, one of the aspects that are
considered for the opening of a new route is the claim that this may have,
because if there is not hard to hold.



"The fuel can be subsidized, but if no one goes there, does not justify
going to the destination," said Torres.



Earlier this year, the government removed the fuel subsidy facing airports in
Guayaquil, Quito, Cuenca and the Galapagos Islands.

In Cuenca Ecuador Vacant Lots Cost More Than House on a Lot!

Our
readers are writing in leaving comments on the blog about how real estate
prices in Cuenca are the same as in the states. Well want to know what we think? In many instances they cost more than in the US!

One lady
commented, “That’s insane, they must be for the gringos”.

Yep, the
market is almost untouchable for the locals who live on a small means and want
to buy a home or lot and build on for their family.

Actually,
at the time of this writing, you’re going to get your real estate deals in the
US, not Cuenca. We have been doing some research on the real estate market in Cuenca
and surrounding areas and here is what we’re seeing. This is unbelievable but
true. We have about ten different Spanish real estate companies that we browse
on a weekly basis, plus the Spanish newspaper, El Mercurial.

Lots
(240m2 – on up) are VERY expensive. It takes 4000m2 to make up an acre and a
450m2 lot here in Cuenca goes for $75,000 to 100k, or more! It is ridiculous.
Here’s what’s really strange, but this is Ecuador, some things are just
strange. Vacant lots cost more than a home on a lot!

In many
cases you will see this when researching the real estate market here. The
prices just for a small lot, right next to other homes is out of this world!

Here are
some examples of lot prices in the city of Cuenca.

900m2 -
$120K

Ad reads: "VENDO TERRENO ESQUINERO DE 900M2. POR LA AUTOPISTA SAN
JOAQUIN"

442m2 –
$175K – oh, and this one is negotiable. Ok, will they take 10k?

Ad reads: SITIO DE 442 MTS EN EL CENTRO DE LA CIUDAD PRECIO $175.000 NEG.

171m2 - $49K
– Wow, this small lot is on a huge incline too – these prices in the city of
Cuenca are out of this world. And most of them are this expensive!

Ad reads: TERRENO 171 MTRS PRECIO $ 49.000

If you
want a small lot in Cuenca to build on you’re better off buying a home on a
lot, then tear down, or use the existing bricks from the house, and rebuild.
Seriously! This is no joke!

Here are
some houses on (the same size lots)
for a better price! We picked out homes that are nice! No dumps here.
Now, compare the prices of these nice homes on a lot to just the vacant lots
above.

There
isn’t just a few with a better price, almost every single casa on a lot
is better priced than if it were just a vacant lot. Go figure.

***Nice 4
bedroom casa on 1000m2 (1/4 acre) $118K

***Nice 4 bed
casa on 176m2 lot for $108K

Ad reads: En urbanización 4 dor Estudio 3 baños 2 garajes Construcción: 230mts
cuadrados. 

***4 bed with
green space (ESPACIO VERDE) it says. 2 car garage asking $95K. This house looks
huge!

Ad reads: CASA FRENTE A PARQUE Y PATIO POSTERIOR GRANDE EN EL CEBOLLAR
Precio  $95,000

We could
go on and on here with the real estate market in Cuenca but we think you get
the idea.

It appears
Ecuadorians value vacant land more than a home on land.  It is unfortunate for those people who would like
to get a half acre to build on.

Listed
prices on land appear to be lower about 30 minutes or more outside of Cuenca and
most people do not want to be out that far. Although you might find a home deal
in Cuenca still, if you are patient and keep looking and have Ecuadorian
connections.

Who’s buying these EXPENSIVE vacant lots?

We don’t
know if gringos are the ones buying these vacant lots in the city, but we’ve
seen more than one well off Ecuadorian who has been working in the US for
years, sometimes 20 years or longer and now wants to retire in their home
country; then they have an apartment complex built on it and they rent the
units out for their retirement income.

We think
this is what’s happening because we personally know of Ecuadorians that fit
that scenario. Would gringos spend so much just on a lot? If they do, we have
to wonder, what for? Dollars and cents wise would it not make more sense to buy
a house on a lot and then work with what you got? If the house is not up to
your standards labor costs are low.

We see
numerous small apartment complexes of around 6 to 10 units, going up all over
Cuenca on these small little lots.

These lots
are highly valued by the Ecuadorians because they look at them as a good
retirement investment, and in the long run they are. Building materials do not
cost that much and once the complex is built they can start renting out the
units.

Rentals go
fast here and if it is in the right location and they furnish it, they know
they can hike up the rents to the gringo expats. Funny thing is though, some
Ecuadorians that have nice apartment complexes don’t gouge the gringos—these
are the ones you’ll need to find if you want to move to Cuenca and live on a
budget and do not want to pay US rates on rents. It’s up to you.