Hangar question

bluerooster

bluerooster

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How many here would consider paying up front for a brand new hangar about 7 to 10 years rent, then move in. (brand new means just that)
Then after the 7-10 years you start paying rent at the going rate?

Seems to be how several airports are getting the funds for new hangars.
 
bluerooster said:
How many here would consider paying up front for a brand new hangar about 7 to 10 years rent, then move in. (brand new means just that)
Then after the 7-10 years you start paying rent at the going rate?

Seems to be how several airports are getting the funds for new hangars.
Click to expand...

Backed by a municipality?
 
bluerooster said:
How many here would consider paying up front for a brand new hangar about 7 to 10 years rent, then move in. (brand new means just that)
Then after the 7-10 years you start paying rent at the going rate?

Seems to be how several airports are getting the funds for new hangars.
Click to expand...


I guess a lot of it would 'depend' I would push for rent to be a certain percent lower than the standard going rate for the duration of my stay, whether it be 1 year or 100 years. Or find another airport :D
 
bluerooster said:
How many here would consider paying up front for a brand new hangar about 7 to 10 years rent, then move in. (brand new means just that)
Then after the 7-10 years you start paying rent at the going rate?

Seems to be how several airports are getting the funds for new hangars.
Click to expand...

Depends on the guarantee on it, but I would also expect a discount from "going rate" into the future as interest on my investment.
 
Henning said:
Depends on the guarantee on it, but I would also expect a discount from "going rate" into the future as interest on my investment.
Click to expand...
What Investment? All you've done is pay up front for an X year lease. When the lease runs out, you have the option to re-negotiate or move.
 
VanDy said:
I guess a lot of it would 'depend' I would push for rent to be a certain percent lower than the standard going rate for the duration of my stay, whether it be 1 year or 100 years. Or find another airport :D
Click to expand...
What, mabe 20-25% or more?
 
bluerooster said:
What Investment? All you've done is pay up front for an X year lease. When the lease runs out, you have the option to re-negotiate or move.
Click to expand...

Opportunity of money. Money*time=more money, at least that's the way our economy works. If I prepay the cost of the hangar, I lose the opportunity to make money over that time with that same money while at the same time I save the builder the interest he would have to pay over the 7-10 years, or the opportunity he would would lose with the money if he paid cash up front.
 
that deal would have to be at a rate equal to the interest rate over the period. IOWs if you placed that amount of money in an interest bearing account how much would you have to rent the hangar after it's built? If they are borrowing the money from you they should pay the interest.
 
So I guess ya'll are talkin' about a discounted price based upon the going interest rate for deposits over the term of the lease?
 
The other benefit would in theory be a locked in price for those 10 years. Assuming the price will go up over that time.
 
From my experience, having a brand new hangar is so much better than the old County-owned piece-o-crap hangar where the airplane used to be.

That's gotta be worth somethin'......
 
Tom-D said:
I doubt the county/port/city will allow that.
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They have no say for 20 years yet. And I still have the land lease, and own the building, for that time.
I've leased the dirt to commit aviation, how I do that is entirely up to me. So if I want to allow my tennants to sublet I can. untill My 20 year land lease is up. At which time I can re-negotiate, but the buildings then belong to the airport, and I must negotiate the lease of them as well.
At my age, 20 years will put me at an advanced age beyond retirement, and I probably won't even worry about it, and just rent one unit for myself.
 
So, you are paying for the construction costs of the hangar upfront and it's yours to use for 10 years, rent free? Then it reverts to the county and you begin paying rent on a hangar owned by the county?
As long as the upfront costs were less than 10 years of rent, I guess it's not a bad deal. I would want a rental amount agreed to now, vs 10 years from now.:D

bluerooster said:
How many here would consider paying up front for a brand new hangar about 7 to 10 years rent, then move in. (brand new means just that)
Then after the 7-10 years you start paying rent at the going rate?

Seems to be how several airports are getting the funds for new hangars.
Click to expand...
 
Be interesting to see the numbers, but wondering if the 7-10 years of "up front" rent wouldn't cover the cost of just building your own hangar.

I would imagine most would expect a payback of 7-10 years.

Seems like a bad deal, but numbers would help.
 
I would if you consider it just prepaying rent for a significant discount of course for the use of your capitol.
 
JoseCuervo said:
Be interesting to see the numbers, but wondering if the 7-10 years of "up front" rent wouldn't cover the cost of just building your own hangar.

I would imagine most would expect a payback of 7-10 years.

Seems like a bad deal, but numbers would help.
Click to expand...

If you can get the land lease and then for a single hangar...
 
I lease the land and own my hangar. I can pretty much do what I want in it or with it. If I want to rent it there is no problem with the city. They collect their lease money and leave us alone. Don
 
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