Along Ecuador’s northern shoreline you’ll find the country’s finest stretch of coast. Here virgin forest covers the hills. The beaches extend ribbon-like along the seashore—pristine, empty and beautiful. This time of year, the foliage is lush and green…almost luminous. The water is clear and blue, and when the sun hits it a certain way, it looks turquoise. Lone surfers have miles of beach and awesome surf breaks to themselves.

Major development hasn’t come here, because this enclave has been Ecuador’s least-accessible stretch of coast. But that’s changing. A highway under construction is going to make this the closest beach area to Quito and to the country’s new international airport. You could profit by positioning yourself ahead of the path of progress.

The most underdeveloped section of shoreline — the part I recommend you consider — lies between Pedernales and San Vicente.

Life here is simple, relaxed and friendly. Locals are as likely to get around on horseback as by car. Swinging in hammocks is a popular way to pass the tropical afternoons. This stretch of coast is the nicest in Ecuador. But poor infrastructure has kept it off investors’ radar.

That is about to change, though. Dramatically. Construction on a new highway from Quito to Pedernales is 90% complete. The remaining stretches are expected to be finished within a year. (On a recent trip, I saw crews working busily.) This new highway links up with the main highway that connects Atacames and Manta. Atacames is a fun, busy beach town—Ecuador’s most popular beach resort—and Manta is a port city with a strong seafaring tradition.

Work is also progressing on the bridge from Bahia de Caraquez to San Vicente; it’s currently ahead of schedule and due for completion in November. It will be the longest bridge in Ecuador. According to Ecuador President Rafael Correa, this project is second in importance only to Quito’s new airport when it comes to Ecuador’s tourism industry. He’s right. It’s going to make a big difference in the ease with which you’ll be able to access the area. Currently, when heavy traffic coincides with certain tides, you can wait up to four hours to catch a ferry.

Also, San Vicente has an upgraded airport terminal. Last year, Ecuador’s airline Icaro Air announced that it would begin flying four days a week into San Vicente. Subsequent to this, LAN Airlines bought Icaro and that route has yet to materialize. But local businessmen and investors are pushing for it.

These projects are elements of the overall infrastructure plan, which is to connect Manta with Quito going via Bahia with a four-lane highway. Put simply: This stretch of coast will become accessible. Here are three ways you could profit once the world catches on.

Profit Play #1

In most countries, it’s hard to find a beach house for $110,000. I should know—I spend about 40% of my time scouting real estate near coasts. Along this stretch of coast, however, if you’ve got $110,000 to spend on a beach home, you can get all the trimmings—a brand-new house on a beach lot in an upscale community. My No. 1 pick for a $110,000 beach house is Coco Beach. Four miles from Jama along a new road and just outside the village of El Matal, you will find Coco Beach Village. I know the developers, brothers Gary and Larry, behind this gated community. They didn’t like the way the local planning authority encouraged unsightly, ecologically unsound building practices. So, impressively, they spent three years getting the local government to change the rules.

Thanks to Gary’s and Larry’s determination, instead of a large group of small lots with busy streets, Coco Beach has a small group of large lots—just 66 subdivisions set amid 21 acres—with two quiet streets.
There isn’t a large boardwalk separating the homes from the beach, so you can step out your front door and wiggle your toes in the sand.

And because all the utilities are underground, the views over the virgin beach are uninterrupted. Every building lot will have green areas, and a thousand coconut palms are spread throughout the development.

I recently visited to see how construction of the first beach houses is progressing. I had high expectations of the developers’ work. Those expectations were exceeded. I saw a $100,000 beach home nearing completion; this was the finest beach home for that price I’ve seen…anywhere.

You would pay $110,000 for a home like this if you started construction today. Once the first residents move in, I expect prices to rise fast here.

Profit Play #2

A beach home for $110,000 is an amazing value. But with some effort, you could do even better—there’s a way you might be able to get two beach condos along this stretch of coast…for free.

Let’s consider a hypothetical example.

You and four friends…or family members…or partners get together and buy a beachfront lot just on the edge of one of the beach towns that dot this stretch of coast. For $200,000, you could buy a parcel big enough to build 30 condos…of, say, 800 square feet each. I saw suitable pieces of land along this stretch of coast last week.

Each condo would have a view of the ocean. The only thing between each of these condos and the beach would be the swimming 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 could 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 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 could each walk away with two free condos…and have your initial stake returned. Right now, prices are low and intrinsic value and upside potential are high.

Profit Play #3

Maybe you don’t want the headache of dealing with construction. You can pick up large pieces of land here (with beachfront) for as little as $800 per acre. The play here is to buy land and wait for the infrastructure and people to come.

Buy a big piece of land that a resort developer will cut you a big check for once this stretch of coast catches on. This stretch of Ecuador’s coast is perfect for land banking.

Whether you landbank, retire, buy a second home…or you’re just looking for an investment opportunity, this stretch of coast should be on your radar. Act now before it’s too late.

For more information on Coco Beach, contact Larry Swenson by e-mail at: cocobeach@pathfinderinternational.net. For legal issues in Ecuador, contact:  Roberto Moreno, e-mail: roberto@morenodidonato.com

See This Stretch of Coast for Yourself

I took lots of video on my trip…of the beaches, the new road and of a beach house at Coco Beach. You can see the videos here: www.pathfinderinternational.net/coastalecuador.

Why Ecuador?

Ecuador has my attention because it offers some of the cheapest property values in the world today. For example, you can buy a high-end 1,000-square-foot condo on the beach for less than $100,000…or a comfortable mountain retreat for less than $50,000.

Last year, Ecuador topped International Living’s Retirement Index, which praised its quality of life and low cost of living.

In this country, you can live high in the mountains and enjoy year-round spring-like weather. Or you can choose from 1,390 miles of coastline and great beaches. And your dollar goes far. I know of retired couples who live comfortably on $700 per month. An excellent three-course lunch costs $2. Ecuador welcomes foreigners with open arms.

Best of all are the property prices and holding costs, both of which are low.

Editor’s Note: Ronan McMahon is the Executive Director of Pathfinder (International Living’s preferred real estate advertising partner), which focuses on opportunity for gains in strategic pockets around the world-before most folks have even heard of them. He writes for Pathfinder’s real estate investment service, the Real Estate Trend Alert.