Sorry
Pharoah, but I totally disgree and I am in a position to quote professional opinion.
Ever heard of risk/reward?
No, but I am very familiar with financial risk management in a commercial enterprise.
Forget a comparison to real estate; historically real property has always appreciated over a longer term and, assuming an astute buyer purchases at fair market value, any short term depreciation in value will be minimal and reverse in the longer term.
The risk to a financier is minimal.
A 30 year old GA aircraft value is predominently based upon the available component hours and a residual value on the airframe. There is a fair chance that up to 50% of the purchase price of a 30 year old GA aircraft is in fact, the available component hours - engines, props etc. The residual value (of the airframe) is what the airframe, avionics, core engines and props etc are worth when those available hours are consumed, usually nanoseconds before it is reppossessed. Not much, as was demonstrated at a recent aircraft auction.
The risk to a financier is very significant and an astute financier will carefully assess his exposure and ask a significantly higher deposit, charging higher risk interest rates - or hold external security i.e. unencumbered property.
I do not see a minimum 40% deposit on financing a 30 year old GA aircraft as being unreasonable? If it were my money (or my superannuation) I'd be asking a 100% deposit............
An
astute Government should be encouraging acquisition of
locally manufactured equipment assets, granting significant investment incentive and if necessary, guarantees and accelerated depreciation. That is the only way high capital cost new aircraft may compete on price with 30 plus year old GA aircraft, which are long past their use by date.
Why should it be simple and easy for an undercapitalised, tyre kicking dreamer with the business accumen and IQ of a gold fish, to enter the commercial aviation (or taxi, or bus) industry, with predatory, below cost product pricing and the financier (and thus the superannuation of many Australians) carrying the risk? It is those same undercapitalised, tyre kicking dreamers who also are unable to pay a fair and equitable wage to their employees and meet their obligation to creditors in a timely manner.
I stand by my previous comments.
There are threads on PPRuNe from time to time, seeking advice on buying an aircraft, usually "to build hours".
In every case my professional advice would be the same: Take a cold shower, two BEX powders and a long lie down. If that doesn't cure the urge, go burn a fist full of $100 bills and if you find that a pleasurable experience, buy a 30 plus year old GA aircraft!
There are only two pleasurable days in old aircraft ownership - the day you buy and the day you sell.
Having said that, I also know of some very nice, well maintained 30 plus year old private aircraft, owned by fastidious, careful and astute owners who can afford
not to count the cost. They are generally
not the cross hired aircraft you find on line at flying schools and small charter companies.