Should You Retire in Ecuador, Er, Equador?

It's correctly spelled both ways… everywhere. I've chosen to use the "Equador" spelling. If you, along with millions of retiring (and some, not!) Americans choosing to live abroad in their older years, this is full of information about this unique country.
Equador is a country with much geographical, cultural and physical diversity. Going westward, you would have to cross the Amazon Jungle and climb the Andes before reaching its magnificent Pacific coastline. Due to its small size, you'll often hear this adage, "you can see the sun rise over the Amazon, have lunch in the Andes and finish the day by watching the sun set over the Pacific."

This country has a 1,400-mile, cliff-studded, and largely undeveloped Pacific coastline, glacier-clad mountains soaring over 20,000 feet, jungles that form the headwaters of the Amazon and one of the world's most interesting island chains: The Galapagos.

Equador offers wonderful opportunities for the sports enthusiast - mountain climbing, hiking, bird watching, paragliding, mountain biking, horseback riding, surfing, scuba diving and other water sports. It has, arguably, the best sport fishing in the world. For those who enjoy fine arts and crafts, the Andean craft trail, anchored in the north by Otavalo and in the south by Cuenca, is unique in Latin America. You can wander the colorful stalls and shops offering gold and silver jewelry, world-class weavings, ceramics, leather products, carved statues, reproductions of religious artifacts, paintings, and hand-made guitars.

The official languages of Equador are Spanish and their indigenous language, Quechua. The importance of Quechua in Equador and other Andean countries is best illustrated by the fact that Microsoft™ is planning to release its popular Office software in Quechua in 2006.

Equador's popularity has steadily increased in the last few years and not just with the tourists - whose numbers increased 25% last year. Potential expats and investors are buying and moving and/or retiring to Equador. The number of North American and European property purchasers has more than doubled since 2005. Why is this happening?

Visitors to the cities of Quito and Cuenca, frequently mention that they don't feel as if they are in a Third-World country. There is poverty in Equador, but the country ranks in the middle of Latin American countries in this category with its larger middle class, and is better off than most of Central America (Panama being the notable exception). Equador is more prosperous than the surrounding Andean countries of Peru, Bolivia, Colombia and Peru.

Equador ranks low in major crime. Interpol, the World Bank, and the UN, rank Equador between third and fifth as the safest country in Latin America. Ecuador's most dangerous cities, Guayaquil and Quito, per capita, have lower murder, rape, and assault rates than Philadelphia, Atlanta, or Los Angeles. However: like most of Latin America, petty crime and property crime are high in Equador. Tourists and newcomers must learn to keep a tight hold on bags, cameras and jackets, and a sharp lookout for suspicious characters working in teams.

Of course, the lower cost of living is a significant reason for many people to move/retire to this unique country. Depending upon lifestyle, a monthly budget for a couple runs 30% to 50% of a similar American budget. Groceries are about 60% less than the cost of the same cart in the U.S. Shop at the many indigenous mercados and spend even less. Imagine five avocados for a dollar or a watermelon for 50 cents? Medical care? A visit to the general practitioner's office will cost you about $20. Dinner out for two, with dessert and wine, runs about $25.

Real estate is one of the main reasons for Equador's low cost of living. In 2005, property prices for non-coastal property ran 20% to 50% of those in the U.S. Bargains are even more significant for coastal properties. A 1,650-square-foot, 12th-floor, four-bedroom, oceanfront condo in a new Salinas high rise is priced at about $145,000. A comparable new condo in Myrtle Beach, South Carolina, Destin, or Marco Island, Florida, would run between $850,000 and $1.5 million.

Equador is a serious contender for those hoping and planning to live outside the U.S in their retirement years.