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Aug 02
2009
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20 Years in Ixtapa Zihuatanejo, an interview with TIM SULLIVAN, a Baby Boomer AbroadPosted by: Ventana Magazine in MyBlog on Aug 2, 2009 Tagged in: Zihuatanejo , Ventana Magazine , Tim Sullivan , Mexico Real Estate , Ixtapa Real Estate , Ixtapa
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Ventana Magazine recently interviewed real estate broker Tim Sullivan, owner of IXTAPA REAL ESTATE in Ixtapa-Zihuatanejo (I-Z). Tim came here in1987, and has been here ever since. In 1994, after having worked the previous 5 years for a few local brokers and developers, he -along with Carmen, his beautiful wife of 15 years- started their own real estate company (Ticar, S.A) and established Ixtapa Real Estate.
VM: Why did you choose Ixtapa-Zihuatanejo (I-Z) as your destination in Mexico?
In actuality, I believe that I-Z chose me. Back in the autumn of 1987, circumstances conspired to allow my then partner, Linda Fox, and I to take a six-month long sabbatical and travel to Zihuatanejo, where Linda had lived sporadically since the early 1970’s. I had never been to Mexico before and had only some erroneous preconceived notions of what it was all about; I’d harvested my concept of Mexico from westerns and Saturday morning serials. As soon as the plane landed at the Zihuatanejo airport, all of those old stereotypes went right into the waste can.
VM: What sets I-Z apart from other real estate locations in Mexico such as Puerto Vallarta or Los Cabos?
I-Z has a unique flavor which distinguishes it from the other destinations in Mexico whether they be beach resorts or colonial towns. The distinction is analogous to one of this area’s most famous dishes: “tiritas”, which is a recipe calling for strips of locally caught fish marinated in lime juice, onions and sliced serrano chile. This simple “platillo” is exquisitely satisfying and uniquely particular to the Ixtapa-Zihuatanejo area.
VM: How large is the expatriate community here? How many Canadian and American expats are living here?
The use of the term “expatriate” is one which I tend not to promote given that some of its synonyms are “exile” and “outcast.” Even though there are some of those, the vast majority of the 3,000 or so year-round and seasonal inhabitants are average citizens of their respective home nations who have chosen I-Z and its surrounding areas as their home or home away from home.
VM: How do these foreigners assimilate to I-Z’s Mexican society and culture?
By and large, the non-Mexican visitors and residents have immersed themselves in the culture and rhythms of the I-Z experience. There are numerous charitable organizations -such as Niños Adelante and S.O.S Bahia, S.A. - that receive bountiful donations of both time and money from the foreign and local communities alike. Social events are equally poly-cultural as lassos between individuals create expanding webs of interdependency. Foreigners have adapted easily to the Mexican culture as a result of its friendly and welcoming people.
VM: Has real estate grown here over the years? If so, what has detoned it?
In the twenty plus years that I have lived in this paradise, I-Z has experienced a slow, steady growth both in the permanent population as well as in the number short-and long-term vacationers. Over the course of this steady expansion, there have been two very strong booms: 1991-1995 and 2005-2008. In each of these booms, the prime stimulus for the growth in the area was the real value investors found in the local real estate in comparison with other destinations in Mexico, where rapidly rising prices had out paced the demand. In contrast, the supply in I-Z had always lagged behind an increasing demand.
VM: What can an interested buyer expect to pay for a new beachfront property in I-Z?
How do prices differ between Ixtapa and Zihuatanejo? Contrary to popular belief, there really is no significant price variation between the two towns which makes up the I-Z municipality. Whether in Ixtapa or Zihuatanejo, or in any of the surrounding beaches, prices for new beachfront properties are running on average between $225 and $350 dollars per square foot of construction.
VM: How have current economic conditions affected real estate in the area?
The present world-wide economic situation is affecting every corner of the globe. Not one area appears to be immune to the effects of the credit meltdown and I-Z is no exception. The local real estate market is experiencing a marked decrease in the volume of sales compared with previous years. In addition, some of the developments have slowed the pace of the construction and pushed back delivery dates. Fortunately, though, prices have remained steady both in the new and resale sectors. Moreover, some developments are still able to offer direct or bank mortgage financing at very competitive rates with comfortable amortizations.
VM: What do you foresee will happen to current property prices?
Well, if I had a crystal ball, I’d be worth a fortune! But since I do not, I am loathing making any predictions in what remains a very unpredictable and volatile market. What I hope to see is an unfreezing of the credit markets coupled with a renewed commitment to established, ethical practices on the part of the people involved in the creation and marketing of mortgages. Only then, I think, can the market regain some measure of confidence thus stoking demand and sales.
VM: What evidence would suggest that I-Z’s real estate will appreciate in value in the coming years?
I-Z is the poster child of real estate’s “Rule Number One:” LOCATION, LOCATION, and LOCATION. I-Z is ideally situated between the azure Pacific Ocean to the west and the spectacular Sierra Madre Sur Mountains to the east. We have world famous sportfishing, boating, championship golf courses, scuba diving, scores of miles of golden beaches, fun nightlife, shopping, history, culture, and the some of the friendliest people anywhere on the globe. Each and every one of these guarantees a bright and prosperous future.
VM: What are the best things to do or see in I-Z?
In addition to the activities I mentioned, I can only add to the list my favorite activity: walking to Playa Palmar every morning with my yellow Labrador retriever, Suli, to greet the new day.
I-Z has a unique flavor which distinguishes it from the other destinations in Mexico whether they be beach resorts or colonial towns. The distinction is analogous to one of this area’s most famous dishes: “tiritas”, which is a recipe calling for strips of locally caught fish marinated in lime juice, onions and sliced serrano chile. This simple “platillo” is exquisitely satisfying and uniquely particular to the Ixtapa-Zihuatanejo area.
VM: How large is the expatriate community here? How many Canadian and American expats are living here?
The use of the term “expatriate” is one which I tend not to promote given that some of its synonyms are “exile” and “outcast.” Even though there are some of those, the vast majority of the 3,000 or so year-round and seasonal inhabitants are average citizens of their respective home nations who have chosen I-Z and its surrounding areas as their home or home away from home.
VM: How do these foreigners assimilate to I-Z’s Mexican society and culture?
By and large, the non-Mexican visitors and residents have immersed themselves in the culture and rhythms of the I-Z experience. There are numerous charitable organizations -such as Niños Adelante and S.O.S Bahia, S.A. - that receive bountiful donations of both time and money from the foreign and local communities alike. Social events are equally poly-cultural as lassos between individuals create expanding webs of interdependency. Foreigners have adapted easily to the Mexican culture as a result of its friendly and welcoming people.
VM: Has real estate grown here over the years? If so, what has detoned it?
In the twenty plus years that I have lived in this paradise, I-Z has experienced a slow, steady growth both in the permanent population as well as in the number short-and long-term vacationers. Over the course of this steady expansion, there have been two very strong booms: 1991-1995 and 2005-2008. In each of these booms, the prime stimulus for the growth in the area was the real value investors found in the local real estate in comparison with other destinations in Mexico, where rapidly rising prices had out paced the demand. In contrast, the supply in I-Z had always lagged behind an increasing demand.
VM: What can an interested buyer expect to pay for a new beachfront property in I-Z?
How do prices differ between Ixtapa and Zihuatanejo? Contrary to popular belief, there really is no significant price variation between the two towns which makes up the I-Z municipality. Whether in Ixtapa or Zihuatanejo, or in any of the surrounding beaches, prices for new beachfront properties are running on average between $225 and $350 dollars per square foot of construction.
VM: How have current economic conditions affected real estate in the area?
The present world-wide economic situation is affecting every corner of the globe. Not one area appears to be immune to the effects of the credit meltdown and I-Z is no exception. The local real estate market is experiencing a marked decrease in the volume of sales compared with previous years. In addition, some of the developments have slowed the pace of the construction and pushed back delivery dates. Fortunately, though, prices have remained steady both in the new and resale sectors. Moreover, some developments are still able to offer direct or bank mortgage financing at very competitive rates with comfortable amortizations.
VM: What do you foresee will happen to current property prices?
Well, if I had a crystal ball, I’d be worth a fortune! But since I do not, I am loathing making any predictions in what remains a very unpredictable and volatile market. What I hope to see is an unfreezing of the credit markets coupled with a renewed commitment to established, ethical practices on the part of the people involved in the creation and marketing of mortgages. Only then, I think, can the market regain some measure of confidence thus stoking demand and sales.
VM: What evidence would suggest that I-Z’s real estate will appreciate in value in the coming years?
I-Z is the poster child of real estate’s “Rule Number One:” LOCATION, LOCATION, and LOCATION. I-Z is ideally situated between the azure Pacific Ocean to the west and the spectacular Sierra Madre Sur Mountains to the east. We have world famous sportfishing, boating, championship golf courses, scuba diving, scores of miles of golden beaches, fun nightlife, shopping, history, culture, and the some of the friendliest people anywhere on the globe. Each and every one of these guarantees a bright and prosperous future.
VM: What are the best things to do or see in I-Z?
In addition to the activities I mentioned, I can only add to the list my favorite activity: walking to Playa Palmar every morning with my yellow Labrador retriever, Suli, to greet the new day.
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