WIX Archives
Re: Am I?
Posted by Christer on Sun Oct 27, 2002 09:56:42 AM
In reply top Am I? posted by bdk on Fri Oct 25, 2002 06:38:39 PM
: The Kalamazoo Air Zoo has a warbird collection they don't
: fly due to the cost of the insurance. There is a recurring
: cost for the airplane (the operating/storage/insurance/we
: ar expenses), and a non-recurring cost (the initial purcha
: se).
I can fully understand that you decide not to fly a warbird due to the high costs. If you own several warbirds you might fly a few of them each year but not all of them.
: If you pay $1M for a Spit, then $1k per month for hangar r
: ent, a wise investor would say this is a bad deal unless t
: he aircraft appreciates at least a like amount.
That?s the investors approach and I fully understand it if there?s no other joy than making money involved.
: The Wall Street Journal once had an article about Warbirds
: as an investment, and many investors collect vintage Ferr
: aris because they tend to hold their value better than oth
: er financial instruments (like stocks) in a recession.
:
: The wealthy people who buy and sell these things are typic
: ally financially smart people. Some are in it for the enjo
: yment (like all of us), some are in it for the investment,
: and most are in between (that's how I sell these kinds of
: projects to my wife!). My wife says that I throw my money
: away on hangar rent, I counter by saying that my T-6 is a
: ppreciating at a like rate... :-)
If warbird ownership is investment only then i understand that all costs most be compensated by appreciation, otherwise it?s a bad deal.
If warbird ownership is not only investment but also about the joy and priviledge of flying such an airplane then the investment part of it is finished when the rebuild is completed or the purchase price agreed on.
Then it?s operating costs you are having for the previously mentioned joy and priviledge!
Maybe I?m being thick but that?s how it works for golfers, the value of their clubs doesn?t appreciate with the accumulated cost for greenfees and whatever costs they may have? If I?m wrong, then I assume there?s no market for second-hand golf-clubs. ;-)