“Is it as cheap to live in Ecuador as they say?”

The question came from an English friend but it’s one I’m asked fairly often. What he's referring to are the claims made by a number of publishers and web services, particularly International Living, Gary Scott and Live and Invest Overseas that promote Ecuador – mostly for the purpose of selling seminars and real estate.

The honest answer to the question, is ‘no’ – but, with qualifications.

Some of the claims are simply false. International Living ran an article claiming that you can rent a “luxury” apartment in Cuenca, all utilities paid, including high-speed internet, cable tv, for $200 to $300. The writer also says that typical taxi fare is $1 (what’s he been snorting?).

Others, including Live and Invest Overseas, say you can live comfortably on $660 a month. This one depends on your comfort level but there’s no way most of us could get by on that budget.

There are other claims that are simply irrelevant. Labor costs are low so it’s possible to hire a live-in maid or full-time gardener for $250 to $300 a month, plus benefits, but I’ve yet to meet a resident gringo with a paid staff.

Real estate, whether you rent or buy, is still a bargain in Ecuador even though costs have not dropped like they have in countries like the U.S. and the U.K. In Cuenca, you can a rent a very nice, modern apartment for $300 to $500 a month, depending on the size. It will be unfurnished, you’ll pay your own utilities, and it will usually come with a one or two year lease. It is a fact that you can find small, older apartments for $150 to $250 a month. The problem is, most of them come unfurnished and you won’t be getting internet, catv or phone … and it’s very unlikely these places will inspire any thoughts of “luxury.”

If you want to rent a newer apartment with high-speed internet, cable tv, 24-hour doorman, utilities included, two bedrooms or more, expect to pay $600 to $1,000 a month, depending on the particulars. The other often-overlooked factor with rentals is that most foreigners are looking for short-term deals. In most cases, you’ll pay more for these, just as you would back home.

I have friends who've bought decent, older apartments in El Centro for as little as $35,000 (a two-bedroom, one-bath unit in this case). Like low end rentals, these are basic and come with problems you might expect in an older property. If you’re looking for a foothold and something simple, these deals are out there (expect to do your own legwork). On the other hand, if you want something relatively new and larger, you’ll pay more although it is still a good deal by North American or European standards – and by Panamanian, Mexican and Costa Rican standards too, for that matter). And frankly, this is what the vast majority of foreign buyers want.

Dissecting the $660-a-month budget, some of the estimates are accurate, others are not.

Yes, doctor’s visits run you $20 to $25. Health insurance is cheap, although you won’t qualify if you’re over 65 or 70, depending on the carrier. And, it’s true that the costs of major medical and dental procedures run 10% of what you pay in the U.S., and, consequently, most expats that I know are self-insured.

The estimate for food costs is deceptive at best. Live and Invest Overseas doesn’t tell you that prices rose 12% last year in Ecuador. And they don’t mention the 30% to 35% tariffs tacked on to lots of imported goods by the government. If you shop at SuperMaxi and load up on imported products, you can pay as much, or more, as you do in the U.S. or U.K. for food. If, on the other hand, you’re an inveterate cheap-skate like me, and take advantage of the mercados and street vendors as well as the grocery store (where I buy only Ecuadorian products), you can eat on something close to the advertised budget. An analysis of comparable goods, shows that I pay about a third as much as my English friend. I could also mention that you’ll eat healthier by avoiding the imports. (In case you didn’t hear, by agreement with the World Trade Organization, those tariffs on imported goods will be eliminated by the end of the year.)

The problem with the claims of Ecuador as a cheap paradise is that those making them don’t honestly compare Ecuadorian apples (such as they are) to the apples from back home. To continue the fruity analogies, they cherry pick items and situations that sell their products.

Yes, you can live cheaply --and well-- in Ecuador. That’s not in dispute. Do your own math, as well as your due diligence.  And tell your friends the truth.

Sylvan Hardy vacillates between Ecuador and other flights of fancy. He can be reached at sylvanhardy@gmail.com.