Partnership vs. Own outright.

Please read below, and let me know what you would chose :)

  • Option A

    Votes: 13 50.0%

  • Option B

    Votes: 13 50.0%
  • Total voters
    26
Ron Levy said:
Make sure that's not one of those deals where after 30 years, the airport owns the hangar, but otherwise, between the $38K in the bank plus the $45K in the hangar and the airplane, the total package for $120K is starting to look like a real bargain.
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Thanks, I will ask.
 
Mafoo said:
Thanks, I will ask.
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It wouldn't be fun to find out you lose "your" $45K asset without further compensation after the passage of some number of years. I'd think a CPA would classify that as a "depreciating asset," and wouldn't really be worth $45K 15 years into the 30-year deal -- and especially not 29 years into the deal.
 
Sac Arrow said:
Don't forget that you have things like maintenance, cleaning, etc... which are also generally shared responsibilities so you don't have to deal with it yourself every single time you need to see the A&P.
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:yeahthat:

Another advantage of having partners.
 
I could never envision dumping all or even half of this cash to not have free use of my investment. I'm on the sole ownership camp for that reason. I want my airplane when I want it. The only construct where lack of availability would be equitable to me is in the renting scenario, where my opportunity cost is limited to the availability, versus availability PLUS whatever cash position is tied in to said opportunity, as in the partnership case.

Non-equity partnership perhaps? But who's gonna do that really? The only ones I've seen have been dudes out of the Country letting their work peers fly the airplane for maintenance and fuel so the thing doesn't rot away. Those are good deals, and you can walk away from the wreck scot-free. But for anything with equity tied in? Meh, I'll just keep whoring the warrior out until I can afford the step-up outright. :D
 
I play golf about 12 hours per month, sometimes as much as 120, but have never considered buying my own course. Maybe I should look into it.
 
wabower said:
I play golf about 12 hours per month, sometimes as much as 120, but have never considered buying my own course. Maybe I should look into it.
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I fail to see your point. Golf courses, just like gyms, are not analogous examples to airplane ownership with respect to what I care about: access.

Golf courses,like gyms are examples where simultaneous utilization by multiple parties is possible without fundamentally restricting access. This is a huge and fundamental difference from piston personal aircraft. Your point would hold water if both users of an airplane could have the benefit of the airplane (flying themselves somewhere on their own time) at the same time. They cannot. The difference between renting and partnerships then becomes one of financial anchoring; renting is a much better alternative in that regard.

The reality is that it's not that black and white in the real world. The majority of partnerships just simply accept having to eat it on the 4th of July for the sake of having limited access to more airplane they would otherwise be able to afford on their own. For a lot of people, that tradeoff works, for others, access is more important than capability and so it does not.
 
I picked option B, but I would not pay $24,000 too quickly. I doubt there is many guys waiting in line to fork out that kind of money.

I was/am not rich. I wanted a ppc and a four place family hauler. We payed off all debt. We stopped eating out, no vacations, went down to lowest Directv subscription, all vehicles to liabilty. We saved for my ppc in 2008. Stayed current on 1-2 hrs per month($90-$180), sometimes with the family for lunch. Saved for the RV-10 slow build kit. The whole family helped. First flight 12/1/2011. TT= 85 hrs. We would not want it any other way. Yes it cost $72/hr for fuel($7200/yr), $150/mo hangar, $2,200/yr insurance, $500 maint, very little in repairs since it is all new. Is it worth $11,700/yr? You betcha. We were paying almost that much in bank interest at one time. It is all about sacrifice, patience, budgeting.

If the wife did not want on board after everything was paid off then I would have built an RV-8A with or without her. My wife is frugal too. We decided in 2006 after RV dreaming that our house came before toys.

If you don't think an RV will haul your stuff, get on VAF and ask to try one out. If you are down this way I will take you up.
 
My deciding factor would be on how much I am going to fly. If I will put on more than just a couple hours a year, owning my own is not the best option for me.

However I do own my own plane currently and do not fly it as often as I would like. So I am looking to rent it to a few select people I am friends with, charge them for the insurance increase when I add them to the policy, and have them chip in for the maintenance costs. This will not only get the plane exercised more, but help me out offset my per hour cost.
 
12 hours per month is still 12 hours per month. If you can't work around the other 348 then you probably need your own plane. My deal was simple. I had first call from Monday thru Thursday and thanksgiving weekend. He had first call Friday through Sunday and other holidays.



hindsight2020 said:
I fail to see your point. Golf courses, just like gyms, are not analogous examples to airplane ownership with respect to what I care about: access.

Golf courses,like gyms are examples where simultaneous utilization by multiple parties is possible without fundamentally restricting access. This is a huge and fundamental difference from piston personal aircraft. Your point would hold water if both users of an airplane could have the benefit of the airplane (flying themselves somewhere on their own time) at the same time. They cannot. The difference between renting and partnerships then becomes one of financial anchoring; renting is a much better alternative in that regard.

The reality is that it's not that black and white in the real world. The majority of partnerships just simply accept having to eat it on the 4th of July for the sake of having limited access to more airplane they would otherwise be able to afford on their own. For a lot of people, that tradeoff works, for others, access is more important than capability and so it does not.
Click to expand...
 
wabower said:
12 hours per month is still 12 hours per month. If you can't work around the other 348 then you probably need your own plane. My deal was simple. I had first call from Monday thru Thursday and thanksgiving weekend. He had first call Friday through Sunday and other holidays.
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This partnership has a website that you login to, and schedule time. Not sure how conflicts are resolved. That will be a question I plan to ask.
 
RV10flyer said:
I picked option B, but I would not pay $24,000 too quickly. I doubt there is many guys waiting in line to fork out that kind of money.

I was/am not rich. I wanted a ppc and a four place family hauler. We payed off all debt. We stopped eating out, no vacations, went down to lowest Directv subscription, all vehicles to liabilty. We saved for my ppc in 2008. Stayed current on 1-2 hrs per month($90-$180), sometimes with the family for lunch. Saved for the RV-10 slow build kit. The whole family helped. First flight 12/1/2011. TT= 85 hrs. We would not want it any other way. Yes it cost $72/hr for fuel($7200/yr), $150/mo hangar, $2,200/yr insurance, $500 maint, very little in repairs since it is all new. Is it worth $11,700/yr? You betcha. We were paying almost that much in bank interest at one time. It is all about sacrifice, patience, budgeting.

If the wife did not want on board after everything was paid off then I would have built an RV-8A with or without her. My wife is frugal too. We decided in 2006 after RV dreaming that our house came before toys.

If you don't think an RV will haul your stuff, get on VAF and ask to try one out. If you are down this way I will take you up.
Click to expand...

Thanks Wayne for the offer, and cool story.
 
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