12 countries in 12 years

Sunday, May 15, 2016

How to Get the Most Out of Your Cuenca Ecuador Discovery Trip Update 2016

Update 2016: It was four years ago when we first posted this article and we have a few new updates to add today to make your visit easier and less expensive. This article is written for people who are mostly just visiting/vacationing in (Cuenca) Ecuador. 



Let's Save Money



1. Get an Apartment: If you are only staying between 1 and 3 months (and even 6 months) we suggest to snag yourself an apartment before you get here, if at all possible. Most folks don't look at the Vacation/Temporary/Rentals on OLX Ecuador.  Check it out here! 



Once you arrive on the website, make sure you check the appropriate boxes on the left hand side for: how many bedrooms you want and check the furnished box. Today on May 15, 2016 there are 70 one bedroom furnished rentals on OLX just in Cuenca.   We think many of these listings are by owner rather than real estate companies and that means BETTER PRICES and MORE NEGOTIATION ROOM!



Most of the online rental portals (Mercadolibre.com) will also have a temporary/vacation rental section and is where people who are coming to Ecuador for six months or less should be able to find a rental easier and less expensively. We do this when we travel because it assures we will have a lower cost place to stay while we visit an area and there is never any pressure to hurry up and find a rental



2. Ask about monthly price: Some of the prices on OLX, as you will see are per night, however, if you see something you like, call them and ask what their monthly (if they have monthly) rental price would be.    



We would venture to say that 8 out of 10 travelers
that come to Cuenca do so for a discovery trip to see if they are going to like
living here permanently for their future retirement years. This is always a
good idea, but it is also a good idea to not live only as a
tourist when you come to visit. Go local! 




Update 2016 - What do we mean, "go local"?  Well, you can come to Cuenca on a vacation and not really know what you are getting into until you

1. ride the bus

2. take a taxi

3. negotiate and buy produce from one of the many Mercados

4. go out to eat in a typical almuerzo restaurant and try some of the other Ecuadorian cuisine

5. enjoy one of the many Ecuadorian festivals

6. eat while walking (lol)

7. get to know some of the the local folks on a personal level

8. go shopping in one of the local grocery stores

9. and so much more...



Get to know the Ecuador culture and way of life on your visit. After all, if you are thinking of uprooting your life and moving here, don't you want to know what it is really like? 







Our “Discover Cuenca Blog
has a lot of good information in it for first time visitors to Cuenca
but reading about going local in Cuenca is not the same as doing it. Just get out and do it! It's a lot of fun going local because you will experience so much more on your visit. 


  

Tourist Don’t Mind Spending Money on Food and Hotel Costs


Being a tourist we tend to
stay in nicer, more expensive hotels, and we tend to patronize the
International cuisine restaurants a lot, and mingle with the expat community more. We
spend money because we’re on vacation! There is nothing wrong with doing those
things; after all, you’re a tourist, right? 




We're not saying, don't do the tourist stuff, by all means, please do, but get to know Cuenca Ecuador and some of the local folks and culture on a more intimate level, that way you will have pushed out any expectations of how your new life is going to be and you will be more prepared to make the move or maybe not make the move...who knows. 


We know that you will not
experience “the real Cuenca” being a tourist. You will not see what you would
see if you lived here. We think your discovery trip should involve the local
beat as well as the tourist beat. Staying two weeks and even two months in
Cuenca as a tourist will not really tell you anything if you live like a tourist.


We went to Mexico for
vacations on three different occasions. All three times we stayed in nice
luxury resorts on the beach, and ate in the touristy restaurants around other
vacationers in the resort. We shopped in the touristy gringo craft shops and
Mercados; we ate in the expensive restaurants geared for the foreigners. We
were typical tourists.


It was like “Wow, Mexico is
nice, maybe we should move here”. But on our third trip to Mexico we rented a
jeep and drove off the beaten path to a city called Colima. We were in culture
shock!
Seriously. It was like “Ohhhh, this is the “real Mexico”. “This is what
Mexico looks like behind the facade of luxury hotels and International
restaurants.”  Big, BIG difference.


Salinas Ecuador was much the
same way. Beautiful high rise condos, expensive restaurants and shops right on
the beach, but you walk a few streets back and there’s nothing there. The
variance is quite extreme.


Cuenca is a little bit
different in that there is really not a lot of “in your face poverty” like
there was off the beaten track in Mexico. In Mexico back then all you had to do
was walk out the gate of the resort and there was poverty and fallen down
shacks. It’s not like that in Cuenca.


There is a tourist Cuenca
and there is a local Cuenca. When you veer away from the tourist spots in
Cuenca, which is really not veering away at all, but patronizing the Ecuadorian
run restaurants and shops, you will find groceries are less expensive and
eating out is less expensive.   




Update 2016 - This is still the trend today,. Everything (panaderias, pharmacies, eateries, tools and hardware, food shopping, everything is less expensive when you walk away from the well trodden tourist sidewalks of Cuenca.



Update 2016- We had to take a popular bakery (panaderia) out of the DIY Cuenca guide because it was a half a block from Park Calderon and too many tourists visited this bakery every day and they still do to this day. All the pastries and cakes and coffee and water (yes they started charging for water form their tap) went up in astronomical prices in just a couple of years...so we took them out of the guide and walked about 7 blocks away and found another really great bakery with normal prices and added them to the guide book to take the place of the over-rated bakery. 


As far as rents go there is
a tourist rent and a local rent. Unfortunately anything furnished caters to the
tourist but you can still find better priced furnished if you keep looking. If
you rent for longer than six months and get a year lease your rent will be less than the three to six month rental. 


The tourist Cuenca is
managed and run by other expats and Ecuadorians who are catering to the
vacationing tourists. Rents, food, shopping and tours will be at tourist
prices. You can spend thousands of dollars during your stay in Cuenca by being
toured around, eating, shopping and touring in the tourist hot spots.


Or…you
can read the DIY Cuenca Landing Guide
and go local
and spend a fraction of the cost by utilizing the resources we have outlined in
the guide book.


If you’re anything like us
and want to live on a retirement budget, once you move here, you’ll see that
living as a tourist in Cuenca is not the way to do it. We encourage our readers
to go local and save their hard-earned money!


There is absolutely nothing
to fear about going local, even if you do not speak Spanish. You can get by
using a Spanish pocket dictionary and sign language—as foreigners the local
population is very forgiving if you do not know Spanish, yet.


To see the real Cuenca,
you’ll want to stray off the beaten path to some of the Ecuadorian grocery
stores we list in the guide and do any run of the mill activities that a permanent resident would be doing.  You’ll need to know a little Spanish for this. 




Update 2016 - Funny the Mercados, especially Feria Libre is becoming more and more expensive for the foreigner and subsequently we don't even go there anymore. In fact when you buy produce "in season" in the regular grocery stores we pay the same or sometimes less than at the local Mercados. Of course, we hope and think they are only price gouging the gringo and not the local because it would be very disconcerting to find out that locals are also paying gringo rates at the Mercados!! 


You can spend $5 to $8 now more like $6 to $10 eating out FOR LUNCH in an international restaurant frequently managed and owed
by expats. But will you want to do that every day? Instead, you might want to
download our free restaurant guide
which lists 10 good Ecuadorian restaurants (LUNCH) between $2 AND $3!   




Update 2016 - Our restaurant guide is still available to download on our website here, however prices in most of the establishments have gone up in price, so expect to pay more than what is listed in the guide. We do list a couple of expat restaurants that have reasonable prices and good food in the updated version found here.


We encourage you to come to
Cuenca and see it for what it is, and step out beyond the usual tourist traps.
Just three, no make that seven years ago, Cuenca was unheard of. There were few tourists
being gouged, and there were fewer gringos even living in Cuenca.


Today, if you are not
careful you will be taken advantage of, but with the DIY Cuenca Landing Guide in your hands, you’ll be able to
spot when someone is trying to gouge you and you will be encouraged to just
smile and walk away, feeling good about your decision. There’s always a better
deal down the road. 




Until we write again, you might also like to read these posts about the real Cuenca Ecuador.







We're an expat family of five living frugal, healthy and happy in Cuenca Ecuador.  We vlog/blog about what it's like to live abroad and be frugal. Come along and enjoy the adventure with us!

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.







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!

10 Warning Signs You Might Be Paying Too Much for Rent in Cuenca Ecuador? Updated 2016

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.6) yard 7) a detached house.
  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 two or 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 (now new gringo rate $600 to $1200 for a house) for an unfurnished 3-bedroom 3-bath house, or you are paying more than $350 for 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 gauge to see if perhaps you just might be over-paying for rent.  

Note: 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.  Houses have higher rents than apartments.

See our videos of beautiful homes in Cuenca for between $250 and $400!!              
We're an Expat Family of Five Living Frugal, Healthy and Happy in Cuenca Ecuador! Enjoy the blog!