Ecuador Expat Caution

Beware of Dream Developments

Navigating the Excitement

I don’t want these stories to scare you away from Ecuador; my intent with this Ecuador Expat Caution is to encourage vigilance. It’s a common sight here: when expats first land, they’re swept up in a wave of excitement – the dopamine high of a new beginning, feeling revitalized. It’s an exhilarating experience, but one that can muddle one’s decision-making.

Ecuador’s charm can be intoxicating, with its beautiful landscapes and welcoming culture. However, this initial euphoria can lead to hasty decisions. The key is to balance that enthusiasm with a healthy dose of skepticism and due diligence. Remember, the excitement of moving to a new country should not blind you to the realities of investing in real estate or any other venture here.

A Word of Caution for Expats

My advice with this Ecuador Expat Caution is clear: never invest in a property unless you can physically walk through it, turn on the lights, and ensure the water is running. In Bahia and its surroundings, we’ve witnessed four expat projects that have fallen short of expectations. By “short,” I mean they never came to fruition. Were these projects initially scams? Unlikely. I believe developers were swept away by their own projections on spreadsheets, envisioning profits that were far from realistic. They often fail to account for the extensive work, regulations, and the under-the-table payments required for permissions.

Like I said, I don’t think they started off as scams, but did they turn into scams? Well, when you continue selling lots and condos knowing that the project will never materialize, it’s hard to argue otherwise. One development had to change office locations 5-10 times, moving from Bahia to Manta, then to Cuenca and Quito, I’ve lost count. Suffice it to say, there’s still no water and no golf course. Suffice it to say, there’s still no water and no golf course. But hey, they do still have a great website, just under a new name. Nothing to see here, folks, move along.

Real Stories of Disappointment

Drawing people in with promises of lifetime free golf, locker access, and more, these projects paint an irresistible picture. Unfortunately, I’ve seen people lose their life savings, and others pass away waiting for a dream that never materialized. People actually shipped all their household goods down, only to end up paying for expensive storage in customs in Guayaquil, because they never had a place to move them into. Like they say, if it sounds too good to be true, it probably is.

How to Proceed with Caution

With this Ecuador Expat Caution, I would never recommend pre-buying in a development. My suggestion is to purchase a property in the vicinity and monitor the progress of the project. If it does come to completion, you’re likely to get a property for the same or even a better price than during the pre-sale phase.

All of Ecuador is plagued with similar tales. Due diligence is your best defense. Ask questions relentlessly—to everyone. This website is an ideal platform to connect with the right people for answers. Someone here will either have the information you need or know someone who does. If I’m interested in a specific part of Ecuador, it’s simple for me to just pick up the phone and make a few calls. I can do the same for you. It’s a small price to pay for accurate information.

Please approach your new life in Ecuador with this Ecuador Expat Caution in mind, keeping both your dreams and your feet grounded in reality.

If you’re contemplating buying or selling property, be mindful of Powers of Attorney (POA) and why they might not be a wise idea. Learn more about the complexities and potential drawbacks before proceeding.

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WHAT PEOPLE SAY

I like how you categorized the different cities and areas into tiers. This was very helpful and played a big role in helping us settle on Quito as our final destination. Thanks!

Matt Duncan

I just picked up the book—thanks! I'll be getting in touch soon.

Melanie Carter