The rose-colored lenses through which potential expats have been made to view Cuenca often blur how the real estate market is constantly evolving, citing numbers that may be out of date. Once you take off the rose-colored lenses, however, the housing situation is still excellent. Here’s how to make it work to your best advantage.
Rentals
Short-term rentals
Rentals have been the rage for expats in Cuenca for the past decade. However, all rentals are not created equal in Ecuador: magazines and websites may neglect to illustrate an important distinction between short-term and long-term rentals. The number of short-term rentals has gone through the roof since Cuenca was named the number one retirement destination in a poll back in 2009. Short-term rentals come furnished, with all household items, appliances, and utilities included in the rent. These are aimed at people needing turn-key situations: tourists, volunteers, students, and retirees scoping out the city before settling for good, as well as recently arrived expats seeking residency. They are akin to holiday or vacation rentals in the U.S., with management services often available for those who are not fluent in Spanish. Short-term condominium rentals can act as a foothold for expats while they scope out properties and decide on a permanent abode, or even build a house or condo from the ground up. Monthly rent for such units goes from $600 to $1,500 a month, depending on size and amenities, with an average of about $850.
Long-term rentals
Long-term rentals, obviously, are better suited for people with plans to live in Cuenca beyond a few months. Long-term rentals normally are a better rental bargain but can require a commitment of at least a year. They can be unfurnished, without utilities or appliances, or furnished with rent including utilities, and typically have a one to two-year lease. Long-term rentals have experienced a reasonably steady rise in recent years, about 10-15% per year. Cheaper long-term rentals, unfurnished, can be found from $300-$400 but significant searching for these is required, and they are usually not as luxurious. The farther you go from the city centre, the lower the price. Amenities such as a condominium with a guard, pool, gym, and jacuzzi will be pricier than bare-bones rental property.
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Don't try to look too far in advance because good rentals in a nice area of Cuenca that are reasonably priced will not stay on the market for more than a week or so. Once you find a good place for a reasonable rent, it's advised to offer a contract for lease on the property right away.
Buying a condominium or house
Another trend on the rise: of those expats who do purchase a property, an estimated 60% opt for centrally located condominiums, usually just outside of the historic centre as they are easy to either rent out or resell at a later date. It's all about location. This will always affect pricing, especially in Cuenca, so doing your location homework is essential. Purchasing prices per meter for new condos in 2017 ranged from $1,000 to $1,500. New one or two-bedroom apartments in good areas with tile and wood finishing range between $80,000 and $150,000 in 2017. For $150,000 to $250,000 one can find a new 3-bedroom, 2-bath unit, with a marvellous view of the city or mountains. Prices vary depending on amenities: condos with outside terrace space in a well-built structure with guard, gym, and pool can run 25-50% higher than a building without these extras. Costs to acquire older apartments are sometimes lower, but a good property going for under $75,000 close to town has become a rare find. Suburban areas, outside of the nicer residential suburbs that are preferred by professional Cuencanos, can be 20-40% cheaper but may not be as desirable neighbourhoods.
Home property sales are still hot commodities in Cuenca for both Ecuadorians and foreign residents. Historically, land (with or without a house) was the investment property of choice for Ecuadorians, but older professionals seem to be selling larger homes in order to downsize to the easy living afforded by a condominium, as well as cash in on the recent increase in real estate values in Cuenca. Recent changes lowering capital gains taxation on real estate property have spurred sales inventory as more Ecuadorians are putting properties up for sale.
In terms of a bargain, your best bet in Cuenca may be to invest in a larger home in a good neighbourhood if you can afford it. 2,000 to 3,000 square-foot houses, beautifully built, often comprising a guest house, can still be found for around $250,000, but again, depending on neighbourhood and furnishings. In North America or Europe, the same property would, in all likeliness, cost twice as much. The market for larger properties in Cuenca has actually been slow in recent years, but with Cuenca's increasingly growing population, it's precisely this sector that now may be the better investment to make.
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