PPRuNe Forums

PPRuNe Forums (https://www.pprune.org/)
-   Private Flying (https://www.pprune.org/private-flying-63/)
-   -   value of shares (https://www.pprune.org/private-flying/428577-value-shares.html)

IO540 29th Sep 2010 07:15

I'd be a little careful with share prices in a Cirrus, because they depreciate rapidly, but the depreciation may well not be reflected in the share price.

The market for Cirrus shares is also not going to be the same as the market for e.g. C152 shares. I know of a few people who are in the Cirrus "147" type groups (where you purchase a block of hours, basically) and they are paying an eye watering hourly rate, but they are apparently happy to do so because they get a decent plane which they can walk away from after the flight. I suspect that a calculation of value for money relative to the actual aircraft value doesn't come into it, in the way it might with a "spamcan" share.

Another thing is that groups around advanced planes will work well only if each member has pockets of the appropriate depth and are willing to stick their hands in periodically and are compatible in their expectations of how much stuff needs to be working (a very rare combination in UK GA ;) ). This is true for all shares of course, but imagine a plane whose panel alone is worth about £100k.

I fly an "advanced" plane myself (though not as advanced in gadget terms as a latest SR22 can be) which I bought new 8 years ago and while I don't regret it for a moment, it is not for the faint hearted. There is the potential for huge amounts of downtime, too. So check the records for past avionics issues very carefully.

Flyin'Dutch' 2nd Oct 2010 20:27

The value of a share is ultimately only what someone else is willing to pay for it (and that principle goes for the whole aeroplane as well of course)

Factors are

Location
Group (size and philosophy)
Type
Fringe Benefits
Aircraft Value

Whatever you do make sure that the group is the right one for you; if it isn't you may have to write off your investment.

I (as have most people) have only positive experiences but judging from what one sometimes hears it can be an awful experience if there is a massive fallout (including going to court etc)

Yuk

blueandwhite 2nd Oct 2010 21:48

The Cirrus groups that effectively buy blocks of hours and the non-equity groups are a very different set up from spending a few thousand to buy into a motor glider group.

You pay relatively MORE to buy into the motor glider group on the assumption that you will get something back. (when I say you pay relatifully more - I mean the post above where some one seemed quite prepared to pay a premium above the value of the aircraft to buy in the group)

The non-equity groups you don't expect to get get anything back. Just pay for your hrs, and maybe monthly fees. Then walk away at the end.

kevkdg 3rd Oct 2010 11:10

I'm not sure now I can/will pay £2,300 for the share. I've only managed to cobble together £2k and then would still need to pay membership at a club I'm not currently a member of which is another £300.

Am concerned by the comments that Slingsby are likely to orphan the Type Certificate as well, not a problem except that according to some sources, the LAA will not take it on either!

Decisions, decisions.

Rod1 3rd Oct 2010 11:33

If you look at recent history it is far more likely that the LAA are actively campaigning to take the aircraft on.

Rod1

kevkdg 3rd Oct 2010 12:38

I've been looking on gliderpilot.net, and have ascertained that a guy is rallying together T61 owners. Is there any links to info about the LAA wanting to take it on... Would be great if it was under permit to fly. I'm a cautious guy and before I invest £2k+ I like to understand the implications.


All times are GMT. The time now is 03:44.


Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.