Investor visa ( Property vs Bank CD)

ODAN wrote:

Hello everyone on forum....

Please comment on the topic about Investor visa regarding Property Vs Bank CD($25,000).....

Whch option is more better and good less risky and time saving too..

Please experts give your good openion..

regards

Is kind of like asking which is better, white wine or red wine? Haven't invested in Ecuador as of yet, but if I do then would look for good solid land, because think over time it's a much safer and profitable investment than cash or cd in a bank, but that's just me. I like putting my expendable cash into land. So supposed I'm biased as to the question.

Should probably add that a lot would depend on your age and where you are in life. I'm still young enough that don't mind holding onto land or house/condo or whatever for 15-20 years in hopes of making a profit. If was say in my 60's or 70's would probably just put the money in a cd.

If you use the bank CD make certain the bank is recognized by Ecuador as a national bank with guarantees similar to the American SBLI guarantees up to %250K for depositors. 
If you go with property make certain it meets the valuation threshold using Ecuador's taxation values. In other words just because you pay $25,000 for the property it may well not have that value when you show up thinking you've met the dollar value criteria. You may find that you may well end up spending $30-40-50,000 or more to meet the $25k requirement.

timo31750 wrote:

If you use the bank CD make certain the bank is recognized by Ecuador as a national bank with guarantees similar to the American SBLI guarantees up to %250K for depositors. 
If you go with property make certain it meets the valuation threshold using Ecuador's taxation values. In other words just because you pay $25,000 for the property it may well not have that value when you show up thinking you've met the dollar value criteria. You may find that you may well end up spending $30-40-50,000 or more to meet the $25k requirement.

Thanks Timo... If someone buy land  of $25000 and when Municipality will access one can not request that accessing value make same of purchase? I heard they do it happily because they need more tax??


best regards

j600rr wrote:

ODAN wrote:

Hello everyone on forum....

Please comment on the topic about Investor visa regarding Property Vs Bank CD($25,000).....

Whch option is more better and good less risky and time saving too..

Please experts give your good openion..

regards

Is kind of like asking which is better, white wine or red wine? Haven't invested in Ecuador as of yet, but if I do then would look for good solid land, because think over time it's a much safer and profitable investment than cash or cd in a bank, but that's just me. I like putting my expendable cash into land. So supposed I'm biased as to the question.

Thanks j600rr,

I am in my late 30's. I will myself prefer a land. But purchasing a property Is quite lengthy process and require proper research and documents. What my idea is that Opening a bank CD is quicker and easier if u sure about the bank is insured by govt.. U get ur residence and after may be u can change ur investment into Property. Because being an expat in ecuador and new.. what i feel. I must take 6 months atleast to get an idea about places and property and then after reasearch i must buy land and i do not want to force myself to buy a land in hurry for investor visa and the aftermaths coming will make a problem.... hope u understand my point... I am myself wanted a land being young and not retire... but i think i must have good research before buying a property and its a time taking phenomina....

regards and i am thankful for ur input...

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Simple answer: land is a store of value with with negligible counter-party risk. (ignoring acts of God, government expropriation etc).
The counter-party risk to fiat currency doubly rests with the bank and the US dollar both, because your store of value will be denominated in USD. The bank may fail, and the value of USD may depreciate through printing, i.e. prices inflate.

If I was going to invest 25K in Ecuador, i would try to buy land (at the local price), with as low of a tax burden as possible.

My 2-cents

James-Esq wrote:

Simple answer: land is a store of value with with negligible counter-party risk. (ignoring acts of God, government expropriation etc).
The counter-party risk to fiat currency doubly rests with the bank and the US dollar both, because your store of value will be denominated in USD. The bank may fail, and the value of USD may depreciate through printing, i.e. prices inflate.

If I was going to invest 25K in Ecuador, i would try to buy land (at the local price), with as low of a tax burden as possible.

My 2-cents

That's my thinking as well James. Land is low maintenance, and if you can find a good quality piece of land with a decent size there is so many options. Can farm it, grow livestock, subdivide it, build small rental cabinas, etc., or you could just sit on it with little to no maintenance other than perhaps clearing it a little from time to time.

j600rr wrote:

James-Esq wrote:

Simple answer: land is a store of value with with negligible counter-party risk. (ignoring acts of God, government expropriation etc).
The counter-party risk to fiat currency doubly rests with the bank and the US dollar both, because your store of value will be denominated in USD. The bank may fail, and the value of USD may depreciate through printing, i.e. prices inflate.

If I was going to invest 25K in Ecuador, i would try to buy land (at the local price), with as low of a tax burden as possible.

My 2-cents

That's my thinking as well James. Land is low maintenance, and if you can find a good quality piece of land with a decent size there is so many options. Can farm it, grow livestock, subdivide it, build small rental cabinas, etc., or you could just sit on it with little to no maintenance other than perhaps clearing it a little from time to time.

In a previous incarnation i was a developer. Started with 6 lot subdivisions, graduating to 30, then 200, ended with 500 lot subdivisions. I know the biz, so it colours my opinion thusly. I learned some secrets of the trade. I will share one with you. Building is a necessary evil to liquify the asset.

Ecuador is a different kettle of fish. I'm sure you take my meaning.
James

James-Esq wrote:

Building is a necessary evil to liquify the asset.

Or if I can paraphrase this obscurity--

Pass the loss on to the next Greater Fool.

There, fixed it for ya.

gardener1 wrote:

James-Esq wrote:

Building is a necessary evil to liquify the asset.

Or if I can paraphrase this obscurity--

Pass the loss on to the next Greater Fool.

There, fixed it for ya.

Lol

Think  pretty much anything in life there is always the next Greater Fool. Trick is not to be the last sucker who bought before things go bust. That applies to real estate, stock markets, mining the list goes on.

For me land is more of a security, and a hedge than a money making entity. Obviously want to get a good price, and not overpay in hopes the asset appreciates over time, but with uncertain economic times want to have a place that can build something, and that will allow me to live fairly self sufficiently if is necessary.

That's my thinking anyway. If it's smart or stupid guess only time will tell.