By Ronan McMahon
For International Living

Read the original article published by International Living here.

Ecuador has the least expensive real estate of any country on my radar. You can buy a high-end condo right on the beach for $100 per square foot. That’s $80,000 for an 800-square-foot condo.

In the mountains (where the weather is always spring-like) you’ll do better—$40,000 for a condo surrounded by towering volcanoes.

These are amazing real estate values. But with some effort you could do even better—there’s a way you might be able to get two beach condos…free.

Let’s consider a hypothetical example.

You and four friends…or family members…or partners get together and buy a beachfront plot of land just on the edge of one of Ecuador’s bustling beach towns. For $200,000 you could buy a parcel big enough to build 30 condos…say, 800 square feet each.

Each condo would have a view of the ocean. The only thing between each of these condos and the beach is the pool.
At a build cost of $55 per square foot, it would cost your gang of five $1.32 million to build these 30 condos. That brings the outlay to $1.52 million (land plus build). Each of you takes two condos. That leaves 20 condos to sell.
Beachfront condos like this sell for $100 per square foot—$80,000. That gives a sales value of $1.6 million. This covers the outlay for the construction and land acquisition in my hypothetical example.

Of course, this example is very simplistic. There are cash flow challenges…and sales and marketing costs aren’t included. Taking on any project like this involves some level of risk…and work.
Bottom line, though: This can be done. Do things right and you and your four friends can each walk away with two free condos…and have your initial stake returned.

I’m writing to you from Quito. On Sunday I set off on a five-day scouting trip of coastal Ecuador. Manta is my starting point. From Manta I’ll work my way north. Each day I’ll see pieces of land that would suit the situation I just outlined above. That’s pieces of land priced between $150,000 and $250,000 that would be suitable for a little condo project.
The plots I’ll be looking at are around Ecuador’s bustling beach towns. Places that would make for a great retirement or second home destination today.

However, my scouting isn’t limited to plots that would work for a small development. There’s also a stretch of coast I’ll investigate…a stretch that places us ahead of the Path of Progress and where some of the best land banking opportunities are.

Of Ecuador’s 1,400 miles of coastline, the most under-developed section of coast lies between Atacames and San Vicente. Semi-dry forest covers the hills. Pristine beaches extend along the coast.

Access to this stretch of coast is set to dramatically improve. This area will become the closest beach area to Quito and its new international airport.

Construction on a new highway that is being built from Quito to Pederanales is well advanced. It is due for completion this year. This has been the least accessible stretch of Ecuador’s coast.

Work is also progressing on schedule on the bridge from Bahia De Caraquez to San Vicente. Today it is 55% complete. It will be the longest bridge in Ecuador. According to Ecuador’s President this project is second only to Quito’s new airport in importance for Ecuador’s tourism industry.

Last year Ecuador’s Aerogal announced that it will reintroduce 737 flights to SanVicente/Bahia in September with a four-day-per-week service.

Put simply: This stretch of coast will become accessible. These projects are elements of the overall infrastructure plan which is to connect Manta with Quito going via Bahia with a four-lane highway.

The play here is to buy land and wait for the infrastructure and people to come. I’ll be looking at big pieces of land here. Some have miles of beach and many hundreds of acres. Find the right deal and this stretch of Ecuador’s coast is perfect for land banking.

Whether you’re interested in land banking, retiring, or just looking for an opportunity…this stretch of coast should be on your radar. I’ll file full reports of everything I see with members of Real Estate Trend Alert.