Ecuador and Cost of Living

 First news - I ended up not taking a travel assignment here.  My old boss actually asked if I could come back for a travel assignment, and I happily accepted, however there is a rule you cannot work as a travel nurse if you have been an employee in the last 6 months.  Although she tried to override this rule, presumably citing staffing needs, and difficulty filling the travel position they had open, she was not successful.  I was a little disappointed, but it was hard to stay so for long.  We will be gone in just a few weeks!  The warm beach is waiting for me!

Of course, how we are going to live, and how much stuff costs over there is very much on our minds.  So is the cost of remaining here.  One big reason for kicking our move into high gear is the cost of this current apartment - abou $2500 a month for a relatively modest 2 bedroom.  That feels insane to me.  Of course everything is going up, as well, groceries, gas, any services.  Just today, I went to the vet to get Maya her allergy shot.  The cost has gone up form $125 to $188.  Taxes have gone up in our area as well.  Gabrielle's tuition for ONE YEAR of her accerated nursing program is close to 6 figures.  This is why I am not super stoked about tuition reimbursement, as it feels like we should be addressing price gouging on the front end, not the back end.

Ecuador feels much more reasonable, on the whole.  Not everything is cheaper there.  But when we break it down, the stuff you have to pay for one time that is not made in Ecuador is more expensive.  Like anything technology related, just for starters.  And there is nothing like Ross or TJ Max for home goods.  For example, I noticed when we were there a camping chair I could get for $12 on sale here was more like $30 there.  We had to buy towels when we did our exploratory trip, because for some odd reason our Air B and B didn't have any - they were more than we would have paid here, for lower quality.

However, reoccuring expenses, as well as goods made in Ecuador, are much more affordable.  Health insurance premiums.  Housing - there are plenty of expats that have 2 bedroom apartments for $500-$700/month for reasonable places.  Because the climate is more stable, you don't use as much for electricity, either.  Many places expats live have constant spring like temps.  The coastal community we are moving to very seldom gets about the low 80s.  Food, as long as it is produced in Ecuador, is much more affordable.  Transportation is considerably cheaper - taxis, for example are $2, to get pretty much anywhere in the city you need to go, and $5-7 to the airport, which is farther away, and has different fees for taxi drivers.  Services are VERY affordable.  A private driver is $10/hr.  So is a housekeeper.  The doctor that speaks English charges $60 to make house calls.

We also have debated how much to put on line about our living situation.  In the end, it is just not safe to have on line, although we have discussed it with many of you individually.  But I did think I would tell you about some of our thought process.

The question is rent or buy.  Both have pros and cons.  In general, it is STRONGLY recommended you do not buy in Ecuador until you have settled some place and love it.  Property is a lot harder to sell in Ecuador.  I think this is largely because they don't really do home loans - you have to pay for it all in cash.  Things we take for granted in the US like building inspections are not as much of a thing there.  Rent is so reasonable.  There is a lot to be said for renting, and having the freedom to move around if some place does not work out.  Brian also figured out you may be able to deduct rent on your taxes.  Buying is a bigger risk in some ways in Ecuador.  That being said.....

If you can afford it, it is nice having no rent at all.  Although home loans really aren't much of a thing, especially for ex-pats, property is much more affordable.   Property taxes are LOW.  HOA fees are reasonable, if you choose a secured condo.  You can just bank all the money you would normally spend on rent or mortage.  You don't have to worry about the place being sold out from under you.  If you have pets, you don't have to worry about whether or not they are allowed.  In general, it is a little easier to find exactly what you are looking for, particularly in costal areas. If you are careful, and pay attention to what types of properties are easy to rent, you can rent out your own property if you want to move around, and have steady income.  If you are coming to Ecuador on an investment visa, this would qualify as investment.  As with any market, you would want to study it ahead of time, and figure out what has the best resale potential.

The other thing worth mentioning is taxes.  There is a significant tax benefit to living abroad, if you are still working and get your income through your job, IF you stay out of the US for the vast majority of the year - I think you are allowed 20 days on US soil or airspace, something like that.

So we are hoping to meet some serious financial goals in the next couple of years.  We'll keep you posted.