Many expats and investors are looking at Latin America with renewed interest as the potential for finding available land at reasonable prices has returned. Finding different and exciting options, like the Ecuador Islands, can provide unique opportunities to truly build a custom-made paradise.

Michel Isabela Blue Beach

While there are not many, the Ecuador Islands offer potential for those seeking to walk the proverbial less-traveled road. Finding one of these Pacific jewels can be a rewarding and exciting task.

Where to Find Island Properties in Ecuador

Isla Puna Palms

Ecuador does have a number of island properties available. While there are some that have been developed to varying degrees, many are still untouched, waiting for the right buyer to expand and grow the potential that is waiting there. Below are several island locations that expats or investors may wish to explore.

Puna Island, just a three hour ferry ride from Guayaquil, is a prime example of the potential of island property in Ecuador. Although only having modest development and infrastructure, Puna’s location makes it prime territory for a variety of investment projects ranging from eco-lodges, resort development, and residential building.

It can be anticipated that the revived market will spur interest by developers looking at the offshore potential of Ecuador Islands. Better infrastructure and increased efforts will enhance the region as a desirable “landing spot” for visitors and expats alike.

In the Footsteps of Darwin – The Galapagos Archipelago

New government rules have now made it possible to purchase island property in the Galapagos Archipelago. Up to 3% of the 60 islands in the archipelago are available for private ownership. Of the 60, there are 18 major islands with a total population of between 25,000 and 40,000.

The archipelago does have two small airports. Baltra (also known as South Seymour) has the major airfield; all private planes flying to the archipelago must land there as it is the only one with overnight facilities. However both Baltra’s airport and a newer one built on San Cristobal, home of the archipelago’s capital, receive flights from the continent.

Isla Isabella, geologically the youngest island of the Galapagos, has a village, Puerto Villamil, which is the third largest settlement in the island complex. With infrastructure improvement during the last few years, the available undeveloped acreage is becoming a desirable location for growth potential.

Buying Real Estate in Ecuador Is Much Different Than in the U.S., Canada or Europe

The real estate market in Ecuador is vastly different than its counterparts in North America or Europe. To begin with, there are no licensing requirements for real estate agents; as a result care should be taken as to selecting someone to represent your interests. Word of mouth from other expats and online communities are good places to begin the research.

A second major difference is that, like most of Central America, there is no multi-list system. It is possible to see the same property listed several places for different prices. Again, the time honored warning “caveat emptor” (let the buyer beware) should be taken to heart.

Foreigners have the same property rights as native Ecuadorians; in fact, residency is not a requirement to property ownership. The only restrictions are those pertaining to the National Security Areas within 50km of the borders or coastline; again an experienced real estate attorney can provide the correct information.

Keep in mind that all transactions will be done in Spanish. If you are not fluent in the language, it is strongly recommended that all documents be translated into English (or whatever your native tongue might be) so that all details are clear.

What Will It Cost?

Cash transactions are the preferred method of buying and selling real estate in Ecuador as in most of Central America. An all-cash transaction can result in substantial savings off the asking price; often as much as 30-40%.

It is possible to purchase with a mortgage requiring a substantial down payment with the rest deferred over a period running between 1 and 7 years. Finding a bank that will work with foreigners, while not difficult, can be a challenge.

Closing Fees and Costs

Most closing costs are borne by the buyer and are based on a percentage of the sale price. The chart below provides an idea of the typical fees involved and the percentage range for each:

(source: Global Property Guide)

Is Island Ownership for You – Some Things to Consider

Buying an island may seem, at first blush, to be a romantic and exciting choice to make for an expat getaway. It is important, however, to consider a number of factors before deciding that island life is the path to follow.

What Is the Long-Term Goal?

There is a vast difference in buying property, island or otherwise, for a personal residence as opposed to an investment opportunity. Deciding exactly what the “big picture” truly is can often determine whether island ownership is the best way of fulfilling that dream.

It IS about the Money

Island ownership is definitely for the fiercely independent types who want to carve out their own image of what paradise should be. That being said, unless money truly isn’t an object, going it alone could turn into a budget-busting proposition.

Paradise Is a Work in Progress

Many island properties will be undeveloped and will require basic infrastructure work such as drinkable water, a septic system, electricity, etc. Having the resources (or skill) to install these items is another consideration of island ownership. Keep in mind that materials and laborers will have to be brought in from the mainland requiring transportation and the associated costs.

Obtaining the proper permits from the government can also be a tricky course to navigate. As is the case with many transactions in foreign countries, language barriers and different legal systems can make the process challenging and frustrating.

Amenities and Isolation – It Can Get Lonely Out There

After settling into an island life, it can become quickly apparent that such matters as going shopping, visiting a doctor (if one is needed), even communications such as cable/satellite, internet, and telephone service are not things that can be taken for granted. Usually the only ways of transportation to larger cities and towns are by boat or plane. Both of those methods can be impacted by the weather; after all, you are out in the ocean.

While this sense of “getting away from it all” may suit some, there are others who may find the lack of ready access to modern amenities a true drawback. Careful thought should be given to what the “Robinson Crusoe” lifestyle will involve before making a commitment.