| By
Gary Scott
Spotting
trends, contrasts and distortions can help us live and invest
better.
According to demographic
statistics, 53% of Americans now live in coastal counties that is only 25%
of the US landmass. This inequality
of distribution of Americans distorts house values. The average home
value in the coastal counties is $308,845. The value elsewhere is
nearly a third lower at $208,256.
In some places
like Naples, Florida (Merri and I just spent a few days at our condo there)
prices are even higher. A new golf course
development (Quail West) in Naples was just finished with 306 lots.
Sales opened December 1, 2005.
Less than 12 hours
later 303 people from across the US and around the world had spend $306 million
on 300 of these home sites!
These people were
chosen by lottery from a pool of nearly a thousand who had already paid a
deposit in the hopes they would be chosen. In
addition to forking out between $600,000 to $1.6 million dollars for a
lot, they are also required to pay $175,000 to join the golf club and
$7,000 a year in homeowners’ fees. A
smaller complex in the poorest area of Naples sold out in a day at $175,000
each for 735 square feet low-end projects.
This is a huge
problem here as there are no homes now listed in Naples
MLS for under $200,000. Yet a family of 4 making $56,000 a year can
only afford a mortgage on a house worth less than $189,000. And the
$56,000 is near the average income per capital in Naples. Yet
the shift to the coast grows. The number of Americans now living
in
coastal counties is up 63% since 1960.
Now consider what
it costs to own a home on the coast in Ecuador. Take Punta Blanca, Ecuador
as an example.
Punta Blanca has been developing for more than 25 years now, and has
over three miles of clean beaches and calm seas A
lot on the water (only a canal) in Naples just sold for $5.5 million. There
are investments in Punta Blanca where a parcel of land to build a
home is $5,500 just 3 hours and 45 minutes from Miami.
Learn more about
Punta Blanca
About Punta Blanca For instance the
Lagoons is a development that can be reached from Guayaquil by paved road
and has mobile phone service, electricity,
potable water, security, trash removal, internet and satellite
television.
According to the
developer this project sits 984 feet from the sea. Lot
prices (depending on the distance to the sea range from an astoundingly
low $2,100 up to $11,000. Lots are 2,690 square feet. The $2,100 lots
are 16 blocks from the water and the $11,000 lots are right on the
water.
Down payments
range from 10% to 30%, and five year financing at 6%. There are discounts on cash deals. Prices
for lots range from $2,100 to $11,000.
House prices are
as low running form $26,400 square foot model to $ for $46,800 for a 1120
square foot model.
The developer offers eight different Santa Fe style models.
Down payments
on the houses range from 40% to 50%, and financing is available for five
years at 6% with discounts for cash purchases.
The TAOS restaurant
is located in the project and shopping and facilities are 1/2 hour away,
about four miles away in Libertad, Santa
Elena and Salinas. Salinas is a very developed city. A
marina and yacht club with restaurants, bars, swimming pools, and an aquatic
amusement park is about a mile away.
Please let me
know at gary@garyascott.com if you are interested in Ecuadorian costal property
and we can help you arrange a tour after any
of our Ecuador seminars. I
have not seen this project nor have I met the developer but you can contact
Gonzalo Eduardo Vela directly vela@andinanet.net
Until next message, good global investing!
Gary |
