Someone might want to take a look at this #RealEstateEcuador info. #LasOlas

 

We don’t know what exactly is going on. But, there are people talking about this project, for sure. I wonder why a person with so much experience on this kind of projects would get involved in something that is wrong. Apparently the people who started the project have long experience on this and have been building on different areas for long time.

We hope that they are not the kind of person who thinks that one can do whatever they like in a country that is in its way to development. Destroy natural life and place where turtles come nest is wrong.

Come on, we are breaking our backs planting trees and watering them and then other person is just destroying the environment?? We hope not! But people is talking about this a LOT!

Preserve history and natural wild life should be priority.

Before investing your money anywhere. Look around.

 

 

Real Estate in Cuenca.

Have you noticed how many new condos and old houses are for sale in Cuenca? Are everywhere! Lots of offers to all price levels.

Is just a matter of typing some keywords or go olx.com.ec site for advertising and see the great offers that Cuenca has. A builder told us that he thinks is better to buy a fixer upper than new because the owner would sell for a cheaper price. Because the owner is usually old and some thousands dollars sounds like lots of money to him/her.

The closer to downtown, the higher the price.

We went to check a brand new house (Rio Amarillo area) with view of Cuenca’s mountains, asking price $100 k it sold within a month, with all the paperwork up to date. $100 k was the price that we negotiated for ourselves and that finally the seller/builder sold out to a local family.

I’m wondering if Cuenca really needs so much new housing or is this a bubble?

Recently we were talking to a real estate agent who mentioned that what he has seen is that prices have become higher since Cuencanos came back from living overseas and since expats started flooding the city (around 5 years ago). He also said that has been a long time since he closed contracts between locals, they do not want to sell right now (I think they do not want to pay Capital Gains taxes), he has done contracts between expats only. We do not know how many other agents are having the same experience, but if someone wants to invest some money it might be good to check around first.

If you want to buy, please be sure that the deed is done for the amount of money that you are paying and not the tax value. The law has changed and now one can pay a fine or even go jail for not doing this deed right. Banks, IRS (EC), Notaries and Municipalities MUST pass information about real estate sales that they had done, money moving, people receiving money and people wiring money to other accounts. It did not use to be like this! Atenti!

On top of this, if you do not make the deed on the amount paid, you might have to pay huge taxes for a Capital Gain that you did not have!

Let us give you an example. This is a very close experience.

A lady bought a 3 story home in a gated community for 95k in 2013.
She decided to do the deed on tax value which was 48k. She had not invested any other money in the house/condo. So, she would not have any discounts from taxes.

She was asking 125k for this home. She got an offer, 108k.

The buyer insisted very bad about doing the deed on 108k.

Lots of arguments.

Finally the sales deed was done for the 108k and she had to paid over 5k of Capital Gain.

You see?

Is very possible that one might get fed up after checking the 5 first homes or condos (Because of the finishes or the quality of work) in Cuenca, but it is important that you do not give up. The more you see, the more knowledge and source of comparison you will have. Ask lots of questions, be direct (We think is just better this way), see what the seller’s plans are about his part of taxes.

Some people are really tricky. Be careful please!

Good luck!

Builder not around.

Wow! look how far we are from the day that we bought this place!

Can you see all the green around the shack? The farmer who sold this place to us had all kind of fruit bushes (whatever they are called)

We gave him  time to harvest his fruit before we took over the place,  there were no stairs to walk into the property so as you can see we added some and also some plants.

Started the building process in early 2014 and stop it to go back to the States and take care some personal stuff.

Came back and get to work again, so far this is what we have.

Sadly, our builder had a wreck (he is safe and sound), made damage to the other car and spent all his money to repair it. Seems to us like he works out of pocket, as soon he gets paid he has to pay someone else.

To the present day He rarely shows up around here.

He sent two guys from his crew to work with us and we  have been happy with their service, kindness, always on time, they learn everyday, follow instructions with no issues.

We cant recommend this builder. But, we can recommend these guys Gafita and Walter, they are uncle & nephew.

From our place we can see if there is any truck loading sand from the beach. One needs to be sure where the sand for the construction comes from. Everyone says Disensa is the best choice. Keep the eye wide open please.

We need to post more pics. We have planted some trees (cedrella), coconut palms, bottle palms, crotos, lime, guaba, guayaba, papaya. The cedrella trees were brought by Walter. Once we were working on the garden and I just mentioned that I wish I had big trees. Next day he showed up with 7 trees! He planted them and help us water them everyday!

After that he have brought 7 more and now we have cedrella trees in one side of our property, cant wait too see the trees fully grown!

There are some foreigners who are building in Puerto Lopez, Ecuador. So you could have several sources of info, opinions and experiences.

 

We have seen real estate or ads sale around here. Is out there anyone looking for a place? Let me know, we could post a pic that shows contact info and you work it out!

Have a great day!!

When Purchasing Real Estate.

Hey Everyone!! So happy to get back to you after so long away! We are working hard, making things happen and pushing this building to get it finished. We hear and read in forums, in FB groups, how fella expats get confused about real estate. Some of us keep thinking like “Gringo” Instead of learnimg from the locals and how locals make business. Ecuador Laws, rules and way to do things are different than in home and we need to get a full bath on all those things in order to be able to take care of ourselves and know what we are doing instead of being concerned all the time. Its time to relax dear fellows! Lets enjoy our retirement, enjoy your home (temporary or not)

So, today we want to talk about this very important area of any expat’s life: PURCHASING REAL ESTATE!! (Notice the Batman’s movie song here)

When investing in real estate, everyone knows that one need to be sure that there is all the paperwork. But, how one can be sure of it? When a person advertises a real estate for sale, he knows that people who is really interested on buying are going to ask for the deed. So, they will have it handy. I will not expect a seller to send a deed by Skype or any online service, that is against his/her privacy.

A deed includes:

-A short term history of how the real estate was purchased by the actual owner. It will show how he/she got it and when.

-Property Registration Cert (the office where people notifies the Gov/municipality that he/she invested in real estate)

-Ownership records (shows the true owner’s name)

-Fire Department certificate of debt free (saying that the owner don’t owe anything to them)

-Unencumbered certificate (so the buyer is sure that this real estate is not under dispute for any debt or mortgage)

-The tax receipt payment for the current year (2014 or at least 2013) Is necesary to have the current year tax paid if one wants to sell real estate.

-Cedula copy of the previous owner, the seller (who is the current owner)

-Cedula copy of witnesses of the sale -Cedula copy of spouses. (if applies)

Lets say I find a really nice real estate in a excellent location and for a very good price. The seller says he can make a sales contract (like in the States) and it will be mine today. So, I feel like I have found heaven on  earth  and I begin to dream how that huge house (or whatever) could be mine.

Sounds great!! But!! What is wrong with that situation?

There is not such a sales contract doc in Ecuador. For real estate sales, Ecuador has the Municipalities plus the Notaries. Is the Notario who MUST do the sales contract. Here is the diffucult to understand part: (I just edit this sentence since I just noticed a translation mistake) In Ecuador not anyone can be a Notary Public (like in the States where a person get a license a stamp and can start working) In Ecuador a Notary Public is a lawyer with a high College degree.

The lawyer who want to be a Notary need to do a test (they do the test at CONSEJO DE LA JUDICATURA), the lawyer with the highest grade on the test will be the one who will receive the responsibility of managing a Notary in a city. ” “Please check the info in the original language for better and full understanding” * Art. innumerado (8.1).- [Calificación].- A quienes aspiren a ser notarios se los Calificará de acuerdo con el siguiente puntaje: Un punto por cada dos años de haber obtenido el título de Abogado de los Tribunales de Justicia de la República hasta un máximo de cuatro; Un punto por cada año de ejercicio de la función de Notario hasta un máximo cuatro; Un punto por tener el título de Licenciado en Ciencias Políticas y Sociales o en Jurisprudencia; Un punto por tener el título de Abogado de los Juzgados y Tribunales de Justicia; Un punto por tener el título de Doctor e Jurisprudencia; Un punto por cada dos años en el desempeño de la cátedra universitaria en asignaturas vinculadas con la ciencia jurídica hasta un máximo de tres; Un punto por cada obra publicada sobre materias relacionadas con la actividad notarial hasta un máximo de tres; y, Un punto por cada cuatro años de haber ejercido algún cargo de la Función Judicial hasta un máximo de cuatro. Si los opositores a una misma notaría acreditaren igualdad de puntaje, la Corte Superior de Justicia nombrará al notario en ejercicio. * Art. 9,- [Requisitos].- Para ser notario si requiere la nominación de la respectiva Corte Superior del Distrito. El aspirante deberá cumplir los siguientes requisitos:

a) Ser ecuatoriano por nacimiento;

b) Estar en ejercicio de los derechos de ciudadanía;

c) Gozar de buena reputación y acreditar idoneidad ante un Tribunal integrada por un Ministro Juez delegado de la Corte Superior, un delegada por el Colegio de Notarios y un delegado por el Colegio de Abogados; los delegados por los colegios de notarios y abogados, deberán ser miembros del Tribunal de Honor de sus respectivos colegios; y,

d) Tener título de Abogado o de Doctor en Jurisprudencia(1). (1)

Nota: El inciso segundo del artículo 129 de la Ley Orgánica de la Función Judicial (L. 891. RO 636: 11-sep-1974), dispone: “Si el pretendiente al cargo fuere doctor en jurisprudencia o abogado no necesitará rendir examen de oposición, y será preferido si acreditare las demás condiciones requeridas”. Podrán también ser notarios los ciudadanos que acrediten notoria probidad y conocimientos suficientes en materia notarial, dándose preferencia a aquellas personas que hayan ejercido esta función. Para el efecto, en los respectivas concursos de merecimientos y oposición para proveer vacantes, podrán participar los ciudadanos que acrediten estas cualidades conforme a la ley. * Art. 8.- [Nombramiento].- En cada cantón habrá el número de notarios que determine la Corte Suprema de Justicia, en base al informe estadístico elaborado anualmente por la Federación Ecuatoriana de Notarios sobre el número de actos y contratos realizados en cada jurisdicción cantonal. Conforme a esta norma el número de notarios en cada cantón, podrá ser aumentado o disminuido según el caso cada año (1). (now you realize why you see signs like “NOTARIA PRIMERA”) So, a sales contract in Ecuador means nothing if has not the stamp from the Notario.

No Notario, no Municipality No Municipality, No Property Registration stamp No Property Registration stamps, no Fire Dept Cert The person who is well informed dont get scammed People who are not in Ecuador, cant give advice about real estate, food, plants or anything, because if one have not smelled it, touch it, bite it, cant tell what flavor the ice cream has. Some areas are more expensive than others.

One needs to consider that one might need medical attention, a pharmacy, a vet, a laundry service, public transportation.

As more services a town can offer, the higher the prices will be. (it will also depend of how desirable or the demand of housing in a specific area) In the States real estate prices might be lower than in Ecuador. (Note here: This is IMO, I have seen lower prices in the States, depending on the area, some areas are way cheaper than in EC, some EC areas are dirty cheaper than in the States. A Italian guy bought 5 ha land in a fishing village for $1 m2 14 years ago, very cheap) But taxes in Ecuador are lower than in the States. The deed will show the tax value, instead of the commercial value.

That is why taxes are little. I was ask by the Municipality secretary what value I want to put in the deed, she said: Do you want me to write $25k value so you can use it for a visa application?

So, if you want to apply for a investor visa, it might be a good idea to ask in the Municipality if they can write the value that you need.

 

Hope this post can help people to understand real estate, paperwork and etc etc

So, guys if anyone has a question, we will be glad to respond (just do not bring the paranoid alterego.. just kidding) Info is for free.

We do not sell information, it should be for free everywhere.

God bless you! Remember He is watching, better make a good day!!

After so much time away, here an update!!!

We have been working in our estate sale for few months.

Now, back in town we are ready for an update!

The bracing of the roof its call “cercha”. The roof that we used is “Duratecho” in the highlands people uses one that is made from concrete and its call “Eternit” and then they cover it with tiles.

Then inside we could install a cilent so we don’t have to see the bracing.

The cost of this roof is $3900 plus $700 for the addition for the deck.

Remember that prices could be higher or lower depending of the area. Also, materials available are different.

I heard that the lotes around us are for sale, so if you are interested we could introduce the owner to you and you work it out or we could negotiate the price for you.

The owner is asking $45 x m2. He has lotes from 12900tf2/1200m2 all of them has beautiful ocean view.

Strong rebar.