Low Budget Retirement in Ecuador

Location: On the equator, Pacific Coast, South America

Population: 15 million

Per capita: $5,057

Ranking: 99^th

Land mass similar to Nevada

Ecuador means equator in Spanish.
Ecuador is a small country in South America which has been experiencing a boom of expats from around the world.  This boom is due to the low cost of living and many other reasons which we will explore through this article. 

 For comparison purposes, we will use a typical US city, Nashville, TN and compare it's cost to a popular expat destination, Cuenca, Ecuador. (Example costs obtained from Numbero)

Housing:

Rent prices in Cuenca average 63 percent lower than our comparison city. If you are from New York or San Francisco you can expect much greater savings.  A 1 bedroom apartment ranges from $200-$400/month for rent and a 3 bedroom apartment ranges from $500-$600/month in the city of Cuenca.

Dining:

A restaurant in Cuenca will average 67% lower than Nashville, TN

An inexpensive restaurant in Cuenca with a decent menu will cost approximately $3.12 on average/person. A meal for 2 people with 3 courses in a mid-range restaurant will cost about $11.00 or $5.50/person. 

Groceries:

Food costs are approximately 62.5% lower than Nashville, TN, i.e. Chicken breast cost approximately $1.00/pound, apples/oranges/potatoes $.30/pound.  

Transportation cost:

A bus ticket is approximately $.30 for a one-way local transport. Buying a car in Ecuador is expensive.

Utilities:

 Utilities are approximately 86% less than our comparison city i.e. electricity, gas, water and garbage.

Residency requirements:  

The requirements to obtain a visa to live as a resident in the country of Ecuador are fairly simple. 1. You must show and income of at least $800/month plus $100/month for each dependent. Another option is to purchase real estate in the country of no less than $25,000.00 plus $500/additionally per dependent. 2. You must have a physical exam which includes an HIV test to prove you are in good physical shape. 3. A criminal background check from your country showing a clean record will be required.

Real Estate:

If you are choosing to purchase a home in Ecuador there is no financing currently available to non-citizens. All sales must be conducted in cash. There are a few opportunities for owner financing, but they are sparse. Due to the lack of bank financing available, appreciation in homes purchased is low therefore you should consider in whether you choose to rent or to buy in this country.  We personally recommend you stay in the country for a period of time and make this decision after evaluating the area and determining that it fits your needs before purchasing real estate.  Depending on your needs, a beach front condo in the country of Ecuador ranges as low as $30,000.  The town in particular that we are referencing is Crucita. It is a small fishing village.

Varied climates:

Ecuador for such a small country has a diverse landscape and offers something for everyone.

Beaches: If you are a beach seeker, many coastal towns provide different types of atmosphere.

-          Montanita, Ecuador, is a surfer’s paradise with a unique nightlife and nightclubs with beautiful people from all over the world. 

-          Salinas, Ecuador, which is outside of Guayaquil, is a popular place for locals as well as tourists to go for their holidays.    

-          Manta, Ecuador is a larger city that is also experiencing local and expat growth.  

-          Crucita, Ecuador is an area that is slowly developing though it is currently a small fishing village. A distance up the coast is Bahia de Caraquez. This area is currently experiencing growth, and has a population of approximately 30,000 persons.   

-          Atacames is a popular European destination and offers beachfront resort-style living.  Foreigners tend to visit from April to October when things are quieter. During this time you have missed the Atacames party scene, which this town is well known for.  

Jungles: For those of you choosing to find yourself in the jungles of Ecuador, there are small towns, one in particular is Tena. Tena is five hours southeast of Quito. This area has become the white water rafting mecca of Ecuador. Tena has a comfortable climate, there is rainfall year round. 

Mountains:

Cotacachi,  If your interests are to live in the mountains of Ecuador, one area that expats are fond of is Cotacachi, Ecuador.  This area is less than two hours north of Quito. It is in between an area of two 15,000 foot mountains.  This area has comfortable weather most of the year averaging around 70 degrees. Rentals and apartments in Cotacachi can be inexpensive from $150-$400/month. There is no violent crime or robberies in this area.  There are currently about 100 expats living in this area as of 2011-2012.  

Cuenca, is another destination for the expat looking to enjoy the mountains. It is 8,468 feet above sea level and is Ecuador’s third largest city. Many international restaurants, café’s, bars and has a strong indigenous presence. The expat can enjoy the conveniences of a city, while still having the ability to live amongst the native Ecuadorians.

Quito is the country’s capital at an elevation of 10,000 feet. Quito is a very large city with a population of approximately 2.7 million people.  The temperatures of Quito are in the mid sixties as a high and the average low is about 50 degrees. It is nearby volcanoes and is just a small distance from the Andes Mountains.  Public transportation is easily accessible and very inexpensive.  Even though Quito is a major metropolis it is still considerably lower in cost compared to our research comparison city of Nashville, TN.  A 1 bedroom apartment in Quito is about $350. A three bedroom apartment in the city is upward of $600+.

Government and People:

Ecuadorians are by nature friendly people and are accepting of foreigners in their country. There are a couple of reasons to be concerned. Although the Ecuadorian government welcomes Americans and looks at their presence as a plus to their economy, the current president has outreached to America’s adversarial countries such as Venezuela and Iran for investment.  While Ecuador’s government is stable and there is no current reason to expect a change, the current President sometimes finds himself at odds with Washington. 

A last benefit to considering Ecuador as your retirement destination is that they use the US dollar as their national currency, which means you do not have to worry about fluctuations in exchange rates.

**Please continue to check our blog for updates. We are currently under continuous construction and will be adding more information daily. 

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