Should You Buy Property in Ecuador? The Case for Waiting

The First Thing Every Expat Hears

You land in Cuenca. You see a beautiful apartment for $85,000. Back home that wouldn't buy a parking spot. Your brain screams: buy it.

Slow down. The math isn't as obvious as it looks.

The S&P 500 Argument

Let's say you have $85,000 and you're deciding between buying a Cuenca apartment outright or investing that money and renting.

Scenario	10-Year Outcome
Buy ($85,000 apartment)	You own a property worth... maybe $85,000–$100,000. Ecuador real estate doesn't appreciate like US markets. You also spent money on maintenance, predial taxes, and repairs.
Invest ($85,000 in S&P 500 index fund)	At historical average returns (~10%/year), that $85,000 grows to roughly $220,000. Meanwhile you paid ~$500–$700/month in rent ($60,000–$84,000 total). Net position: $136,000–$160,000.

The invested money wins. And it's not close.

Ecuador Real Estate Doesn't Behave Like US Real Estate

In the US, you expect your home to appreciate 3–5% per year. In Ecuador:

• Appreciation is slow or flat in most neighborhoods
• There's no MLS — no transparent market data, no comps, no Zillow
• Selling takes time — months to years, not weeks
• Liquidity is terrible — you can't sell and have cash in 30 days
• The buyer pool is small — mostly other expats and local Ecuadorians at local prices

Your $85,000 apartment might sell for $80,000 five years later. Or it might take 18 months to find a buyer at all.

The Mortgage Reality

Thinking about financing? Ecuador mortgages are nothing like US mortgages:

• Interest rates: 9–11% (not 6–7%)
• Terms: Usually 15–20 years max
• Down payment: 30% minimum for foreigners at most banks
• Qualification: You need Ecuadorian income or a co-signer
• Cooperativas may offer slightly better rates but still much higher than US norms

At 10% interest on a $60,000 loan (after $25,000 down on an $85,000 property), your monthly payment is around $645 — basically what you'd pay in rent for a nice apartment. Except you're also paying for maintenance, insurance, and repairs.

The Hidden Costs of Owning

Renters don't think about:

• Predial (property tax) — small but annual
• Building maintenance fees — $50–$150/month for condos
• Repairs — plumbing, electrical, water heater replacements
• Furnishing — if you buy unfurnished, budget $5,000–$15,000
• Legal fees — escritura notarization, lawyer review
• Empty months — if you travel or leave Ecuador temporarily, you're still paying

When Buying DOES Make Sense

Buying isn't always wrong. It makes sense if:

1. You're committed to 10+ years in Ecuador — long enough for the math to potentially work
2. You're buying with cash — no 10% interest eating your returns
3. You're buying for lifestyle, not investment — you want to customize, renovate, make it yours
4. You're buying income property — a rental unit in a high-demand area like El Centro can generate $600–$1,000/month
5. You found a genuine deal — estate sales, motivated sellers, properties below market value

The Rent Advantage Nobody Talks About

Renting in Ecuador gives you something money can't easily buy: flexibility.

• Don't like the neighborhood? Move in 30 days
• Want to try Vilcabamba for 6 months? Go
• Need to return to the US for family? No property to manage or sell
• Landlord won't fix the water pressure? Find a new place
• Ecuador changes and you want to try Colombia? You're free

Many expats who bought in their first year wish they'd rented for two years first. Your preferences change once you actually live here. The neighborhood you toured on vacation isn't always where you want to live full-time.

The Bottom Line

Ecuador property is cheap. That's not the same as saying it's a good investment.

For most expats — especially in the first 2–3 years — renting is financially smarter and practically easier. You preserve liquidity, avoid currency risk, skip the legal complexity of foreign property ownership, and keep the option to move.

If you still want to buy after living here for a couple of years and you're paying cash? That's a different conversation entirely.

But don't let the sticker shock of cheap apartments convince you that buying is an obvious win. Run the numbers first.

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Have a real estate question? Drop us a line at cuencaexpat@gmail.com.