The North Pacific: The Best Stretch of Coast in Ecuador

Friday, December 09, 2011

affordable Ecuador properties
The North Pacific: my favorite coast in Ecuador

Dear Reader,

You’ll find Ecuador’s nicest stretch of coast on its North Pacific coast between Canoa and Pedernales. Steep, forest-clad hills rise dramatically from the rocky shoreline. The ocean views from these hills are awesome. Warm breezes keep the temperatures comfortable. Monkeys howl and brightly colored butterflies dance among the leaves and grasses.

The weather and topography here are unlike anywhere else in Ecuador. To the south, the coast is mostly covered with dry brown scrub and thin vegetation. North of here it turns muggy, buggy and wet. But in this spot you get plenty of sunshine… and enough rain to keep the forest that blankets the hillsides a rich green for nine months of the year.

The Pathfinder beat is to find the crème de la crème. The best beach on the finest stretch of coast. The finest building on a city block. And this is Ecuador’s finest stretch of coast.

As a reader of these alerts you will know that until recently this stretch of coast was difficult to get to. But in January 2011 the new coastal road from Quito to Pedernales was finished. This cuts the drive time from Quito to Pedernales in half to three-and-a-half hours. So access is easier now, and more of Quito’s residents can come here for weekends and vacations …and it’s likely to attract more foreign tourists, too.

It’s quiet here. At least for the moment. This is a place to come and enjoy the solitude and nature. Hike in the hills. Take long walks on empty beaches. Eat fish straight off the boat in rustic beachfront restaurants. If that’s your thing, this is the best place in Ecuador for your beach home.

A spacious 1,800 square foot beach home for $134,600…

beach homes Ecuador
Jama Campay homes are spacious, with an open-plan layout

Perched on a little cliff a few steps above a wide sandy beach, around 10 miles north of Jama, you’ll find Jama Campay.

Ocean-blue views stretch to the horizon and south along the coast. The beach offers ample space for swimming and volleyball…and there’s verdant nature all around for hiking, biking and boating.

These 1,800 square foot, three-bed, three-bath homes are spacious and comfortable with large open-plan kitchens and living areas.

Great beach home. (You can request a full information pack here.) And I expect prices will rise. This coast stayed undeveloped and undervalued because it was difficult to get to. With the new highway that’s changed.

Jama Campay is attracting well-heeled buyers from Ecuador’s capital city Quito. But only one home in Jama Campay is available for rental. That rents for $250 - $350 per night. It’s in hot demand. There’s only one other strong project along this coast. That’s Coco Beach Village – and only eight of their 66 lots are still available.

More developers will come.

This will be good news if you have got in ahead at one of these best in class projects. Or, you could profit by owning the land that new developers will want to build their project on.

I’m talking about land banking. You can buy large pieces of oceanfront land along this coast from $1,000 per acre. Buying isn’t easy though. It will take work and boots on the ground. And to get in at this price per acre you need to buy a large chunk of land with hundreds or thousands of acres.

In this business, you make your money buying. On this piece of coast, pricing is mostly “made up”— and there are no comparables to give you an idea of current market values. Many properties listed are only for sale if the owners find a gringo who will pay top dollar. The key is to find a motivated seller- someone who needs cash now.

As with any property purchase, when choosing land always focus on who the ultimate end user will be. Who will you sell the land on to? For the biggest returns, you will want to sell to a developer. You need to look at the land through a developer’s eyes. He will look for:

An accessible location.
Water, electricity, sanitation close by.
Easy and transparent permitting process.
Beachfront or ocean-view
Potential for amenities like golf.
Capacity for high density. The higher the potential density, the more the developer can make per acre so the more he will be willing to pay for raw land.
Holding costs. How much will it cost in taxes, security, etc., just to sit on the land?
Can income be derived from the land while you are sitting on it?

Finally, you need to be willing to stick with this for the medium term at least, if not the long term. Changes can happen slowly. But, when they do, the returns can more than justify the wait and the risks.

Or…you could just kick back in your beach home at Jama Campay and wait for the Path of Progress to roll through.

Ronan McMahon