Ecuador is in the middle of a painful confluence of economic events.
The chickens of a decade of socialist style governance have come home to roost.
At the same time that government growth, taxes and regulations have exploded, oil revenue has collapsed – causing budget cuts. The job market is soft, banks have stopped lending, regulation has caused capital outflows and taxes are causing economic stagnation.
All this has lead to asset prices falling. Land prices continue to sink. The car market has taken a beating.
This means it is an interesting time to be an investor in Ecuador. As liquidity is scarce, people are also under enormous pressure to repay the high interest loans that became prevalent during a recent credit expansion.
To be cash rich, now, in Ecuador is a great position to be in. Assets are on sale. Land in particular.
And the underlying asset has incredible intrinsic value. Ecuador is one of the most bio-diverse country’s on the planet.
Water literally pours out of the ground. Gold, oil and incredibly fertile soil highlight some of the many attractive features of land in Ecuador.
Breathtaking natural beauty, a varied and spectacular climate and some of the best safety in Latin America make Ecuador an extremely alluring destination.
Ecuador was already cheap. Both in terms of cost of living and land value. With the downward pressure on real estate, prices are pushing even lower.
Sellers under debt-fueled pressure to sell are putting land on the market all over the country.
Beautiful, productive land.
There has never been a time where the phrase ‘cash is king’ was truer than right now in Ecuador.