12 countries in 12 years

Friday, August 21, 2015

What's the Difference between Foreign GUEST and Permanent RESIDENT Abroad?

There are some big differences between being a guest and being a permanent resident abroad. As a guest it is easy to accept the first price quoted. After all, we’re not staying; money is not on our mind as vacationers; we just want to have fun!  Guests always pay more for everything because, truly, it’s not a big deal; it’s expected that as a tourist (90-day stay) we will pay tourist pricing, so what. It’s not always about money however. It’s about how we behave as travelers. Let me explain.
 


Frank and I always “go local” when we travel; we speak Spanish; we take the local transportation; we eat in the local eateries; and we shop in the local Mercado's; we know most of the cultural quirks and customs of living in Latin America since we’ve lived here for four plus years now. So we do not consider ourselves guests in Latin America but more like permanent expats. Which means, we behave with a certain amount of confidence when doing things in foreign countries. This self-confidence shows in our mannerisms when for instance, we are looking at rentals or buying produce from the local market.






Group of tourists in El Centro - Cuenca Ecuador

 Where Does the Term EXPAT Come In?
 


Ecuador opens their doors to foreign guests for full 90-days and if a foreigner decides to put down roots after the visitor stamp is up, they will then need to process a resident VISA. This is why some foreigners have been given the title of EXPAT.



However, technically speaking an “EXPAT” is one who renounces citizenship in their home country and becomes a citizen of another country, which is called EXPATRIATION, and is where the term EXPAT comes from.  But from a world traveler standpoint, the name is given to many foreigners who have left their home country and have moved abroad, whether or not they have renounced their citizenship somewhere else or not.
 


EXPATS are not GUESTS


Once a person packs up their belongings, whether they sell them or bring them with them abroad, and they begin renting permanently, (not just 3 months) they are no longer guests or tourists, but residents; this also applies even if there is still paperwork going through the process stage. If the intent is to live somewhere on a full-time basis then how is that being a guest? 



For personal fulfillment we believe it is necessary and respectful to adapt to the ways of the new land we are moving to, even if that means to negotiate prices. In all Latin American countries, negotiating is what the locals do, and if you are not a guest any longer then it is what they expect you to do too. They will not gringo you if you play the game with them; in fact they will respect you more for it. Watch them grin as you try and negotiate with them; they like it!
 


Now, when you hear “John and Jane Doe's cost of living is $2,300 and Mr. and Mrs. Smith’s cost of living is $1,300 in the same city or town somewhere abroad then you’ll know that one couple is still living as guests, while the other couple has “integrated into the community”.  This is one reason why cost of living statistics of foreigners living abroad are all over the map; it’s ambiguous at best.
 


If you think it is all about money and pricing, or how much time spent in a place, it’s not, it’s also about our attitude. Many expats that have been living abroad for several years “feel” like they are still guests in the country they reside in.  A resident abroad can certainly make themselves “feel” like they are a guest where they live permanently, and it is certainly ok to have that feeling...but...


The point is not whether we think of ourselves as guests or not, but that we ALWAYS treat everyone with respect.  That’s all about it. If I were to wonder why some folks still feel like guests when living abroad it would be because they feel disconnected from the local community and possibly even the expat community.
 


Certainly, not everyone can blend in, speak Spanish in a few years and start living like a local; and we do not expect everyone to do that or even want to do that. Again the point is, foreign residents that live permanently abroad are not guests any longer, although many of them behave like they are still guests; some folks might think because they are “foreigners” abroad then they must be a guest”.  But this is only “a way of thinking” that bases assumptions on their foreignness and goes directly back to our attitude.
 


What is a “Foreigner”?
 


When you look up the definition of a foreigner it means “stranger”, an “alien”, an “outsider”.  So then some foreigners who are living as permanent residents may feel they are still guests and is why they often express themselves to others as being guests. It’s perfectly ok to feel this way. However, when looking at this issue from both sides of the apple cart, we see this way of thinking can be disadvantageous to both parties as long as the foreigner is still living abroad, and here’s why.
 


1. The foreigner will always feel like a guest
 


When the foreigner always feels like a foreigner they are less likely to learn the language, blend in, interact, negotiate, and feel comfortable in their new home land.  Humans have an inherit need to “fit-in” and it can be disconcerting when one does not feel good about where they live. This is why many foreigners move back to their home country; it’s perfectly fine. They still have the adventure of traveling to a new foreign land and seeing what it’s like living in a totally different cultural environment and that’s great.
 


2. The locals will always treat the foreigner as a foreigner
 


When the foreigner continues to behave like a guest, by not speaking Spanish, dressing differently, not living in the same kind of housing and neighborhood, and not shopping and negotiating where they do, etc, etc, they will never get to know you, respect you, and be your friend because you are keeping yourself at a distance from them, not just physically, but mentally, and emotionally as well and that can and does come across as somewhat disrespectful.
 


Not only that, but your cost of living will be much higher because the guest (tourist) attitude gets taken advantage of in Latin American cultures. For instance when the landlord knows he can get $600 from the foreigner he will gladly skip over the local who can only pay $300, to rent to you instead. Who does this hurt? It hurts everyone.
 


The question we must ask ourselves is this: “For how long are we foreigners for”? Until we live somewhere abroad for 2 years? Or until we become permanent residents on paper and have an ID card? Until we renounce our citizenship in our home country? Or ?...? 


NONE OF THE ABOVE.
 


Using the term “foreigner” is a label, meaning it is only how one feels in their heart and mind, which makes up our attitude. A person can allow themselves to feel like a foreign guest forever and continue to get taken advantage of by the locals, or they can break out of this labeling and realize that they have just as much right to live anywhere they dream as long as they are respectful of the people and culture of their new life location abroad.



When we negotiate, ride the local transportation, dress like they dress, live in a house like their house and enjoy the same restaurants and events as they do, then where is the guest attitude now? It’s gone with the wind and that my friend will make you and them the happiest while living together in the same community. We think life has much more fulfillment when going local abroad. 



Until we write again!



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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!

Wednesday, August 19, 2015

Can You Buy Fixer Upper Houses in Ecuador? Cuenca Ecuador Real Estate

A Reader asks: Does Ecuador have fixer-uppers like they do in the states? 



Yes and No.



There are fixer-upper homes that you can buy in Ecuador, however, they don’t stay on the market very long and so when you see one with a good price that needs repaired, updated and remodeled you need to act fast. 



There are several reasons why you need to act fast.  Ecuador is a country with millions of people that cannot afford the newer priced homes and when a fixer comes up on the market, it will be considered by many of the local people. Not only that, but many of the fixers will not even get a chance to be listed because everyone in the neighborhood finds out about it; neighbors tell their neighbors who tell their neighbors and poof, someone hears about a good deal and buys it.
 


Many of the homes in Ecuador are in need of remodeling and updating and are not considered a fixer to the local folks. Here’s what we often see in the older Cuenca housing market: outdated bathroom shower fixtures, toilets, sinks, etc. Surprisingly, toilets, tubs and pedestal sinks are not that expensive in Ecuador; perhaps they’re manufactured here. Someone that knows can comment below.



Here's a fixer house that I found in Ballenita, Ecuador; they even reduced the price from $39,500 to $32,000. However, the ad is on Craigslist and it is in English that means they are advertising to the gringo market. If you do your research, you're bound to find better deals from Ecuadorians.




Fixer upper home located in Ballenita, Ecuador


And here's another one I found in Cuenca, Ecuador; 2/1 small home asking $25K. So, if you are a handy person there are some deals out there. And remember, these are ASKING prices.




Cuenca, Ecuador Fixer home asking $25,000

I found the Cuenca fixer above on two different websites, both in English. If they'd list this home in Spanish and on Ecuadorian "for sell" websites they'd probably get a local Ecuadorian to make them an offer.



What's the Difference Between an Older Home and a Fixer?



The typical older home in Cuenca Ecuador (1970’s, to late 1990’s) is much like a fixer upper home; it may need updated windows and screens and light fixtures throughout.  If it has hardwood floors, and many of the older homes in Cuenca do, they might need a good re-sanding, as well as the staircase hand rail and steps; sometimes the floor tile work is old and outdated and it will also need updated. Kitchen counters might have old-fashioned tile work you’ll want to update to granite; if there is a yard it will need landscaped; and most older homes need a fresh paint job inside and out.   

  

Funny
though, they still ask quite a bit for a house that needs all this
work. Also, bear in mind, they won’t tell you about these cosmetic and repair
updates; often times they don’t realize the house needs updated.  You
might have to point out all of the things that need done to the home and
lower the price respectively to what needs repaired, updated and
remodeled.
Before we buy a home in the US that's what we do, so why wouldn't we negotiate all the repairs when
buying an older home overseas?




Below is a photo of a home in Cuenca Ecuador with a  typical outdated kitchen. You may need to click on the photo to notice the counter tops are old tile work; kitchen cupboards are outdated; and look at the old ceramic tiles on the floors. Yet, they are asking $168,000 for this house. In MOST parts of the US you can get a new home or remolded home for this price that doesn't NEED any work done to it!




outdated kitchen counter tops, floor tiles and cabinets



You may want to know that older homes in Ecuador usually have small rooms, enclosed kitchens and insufficient lighting and airflow. Rarely do we see in the older homes an open floor plan and good natural lighting. Also, what is typically called a house in Cuenca Ecuador is really a town home; these homes rarely have any yard to speak of. If you want to buy a detached home with generous green space, you'll usually have to go outside the city for that.
 


We personally have walked thru many homes in Ecuador and we notice a lot of tiny master bedrooms; they are about as big as your walk-in closet. All of these things need to be taken into consideration when buying. It might be a better idea to just build your own home to the architectural designs you fancy.
 


Another thing we see a lot in Ecuador, especially the coastal areas is unfinished houses. You can usually pick these up for reasonable prices but you will still have a lot of work to do on the home. However, if the interior walls aren’t built yet, you can customize the room sizes and add your special architectural designs and finishes to the home that you wouldn’t have the chance to do with an already built older home.




This "still in the construction phase home" is $27k in Paute Ecuador

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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!