Friday, September 07, 2012
Dear Reader,
It’s the best piece of coast in Ecuador: gorgeous, unspoiled and low-key. You’ll pay less for a beach home here than in any other location on our beat. It’s on the up, attracting growing numbers of tourists and property buyers. We’re already seeing a trend of rising prices and increased rental demand.
I’m talking about Ecuador’s north Pacific coast. I explained on Wednesday how this place used to be difficult to get to. Thirty years ago, it took at least 18 hours to drive here from Quito, Ecuador’s capital city. Even a few years back the drive took 8 hours or more. The opening of the new coastal road in 2011 slashed the drive time to less than 4 hours.
The new road turned this stretch of coast into the closest beach area to Quito. Locals now see it as a great spot for a vacation home – somewhere to spend the weekend and holidays, relaxing by the sea. And foreign buyers see it as a low-cost second home destination that’s ripe with potential.
And those local and foreign buyers agree on one thing. The best-in-class project in this area is Jama Campay.
Its setting is hard to beat. It sits on low cliffs that drop gently down to a soft-sand beach. It gazes out to the Pacific Ocean in shades of deep sapphire and light blue. Hills covered in thick forest provide a rich green backdrop.
Jama Campay is linked by the coastal road to a series of little fishing villages, fun beach towns and the larger city of Bahia. This isn’t the place to come if you’re looking for a city lifestyle. You won’t find big malls, fast food joints or giant movie theaters on this coast.
Instead, it’s a tranquil, peaceful location. You can hear the call of howler monkeys in the forest….watch tropical butterflies dance past…and see whales offshore when they come to this coast to breed. You can amble down to the beach for a swim…buy fresh-caught fish for as little as $2 a pound…kick back and leave the stress behind.
The first buyers in Jama Campay mostly came from Quito. But it's now attracting more foreign buyers. Some want a vacation home; others plan on retiring to Jama Campay, drawn by Ecuador’s low cost of living.
I mentioned that prices are now starting to rise. We first told you about houses in Jama Campay eighteen months ago. Then, $115,000 bought you an 1800-square-foot house. The houses sold quickly. The last two sold for more than $140,000.
A new development started next door in recent months. Their lot prices per square foot are double those at Jama Campay.
It’s not just rising prices. The rental market is growing, too. Most Ecuadorians don’t like to rent their vacation homes. They prefer to keep them private. Very few of the homes in Jama Campay are available to rent. That's why an owner of one home was able to gross $3,800 in rent in December 2011. Not bad considering he bought this large home, just last year, for $180,000. That's a gross yield of 2.1% in December alone.
It’s not just short-term rentals. The developer is also getting requests for long-term rentals. There are plans for big residential communities on this coast. Professionals working on those projects are looking for quality accommodation. It’s in very short supply in this area.
Now, the houses in Jama Campay sold quickly. And we’re seeing the same thing with the condos that launched in March 2012. They’re a hit with buyers. That’s not surprising. There simply isn’t anything like them for sale on this coast.
The condos will have a spacious open-plan layout. All the condos have ocean views, even from the ground floor. And they’re only a few minutes’ walk to the beach.
This is an amazing place to spend time…relaxing poolside with a cool drink…or strolling along the miles of beach that open up as the tide drifts out. And there’s no other location I can think of where your real estate dollar stretches so far.
The condos are very attractively priced. You can buy a two-bed 960-square-foot condo from $89,880. Larger three-bed units with 1448 square feet start from $139,170.
If you’re interested in these condos you should contact the developer here today. But don’t wait. As I said, the condos are selling fast. Only 8 remain at these prices. If you don’t act now, you might miss out.
Margaret Summerfield
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