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Have you ever thought about an aircraft timeshare? It wasn't on the top of my list either. But, today's contributed post could help you determine whether partially owning an airplane is worth the money.
Timeshares used to be a popular investment option but in recent years, they’ve fallen out of fashion. Timeshares on vacation properties involved a lot of tricky contracts that are very difficult to get out of and most advice warns you against these kinds of timeshares.
However, there is still one timeshare that is gaining in popularity and is a far more sensible investment option; aircraft timeshares. If you’ve got a bit of cash to invest and you’re not sure where to put it, here is a quick guide to aircraft timeshares to help you decide whether it’s right for you.
An aircraft timeshare works in the same way as the property timeshares; you pay some money for a percentage of an aircraft. The smallest share you can usually put in is about one sixteenth. Then you’ll divide up the time between you and the other investors, the amount of time you’re eligible to use the aircraft for depends on what percentage you own. If you buy one sixteenth of the aircraft, you usually get 50 hours of flying time per year.
Depending on the contract, you may get a pilot included or you may not. If you don’t, that’s not too much of a problem because you can hire contract pilots like Wade Coggin to fly the plane when you want to use it. It’s an extra expense but you’ll probably be paying less for a contract that doesn’t include a pilot so it works out roughly the same price.
There are a couple of great benefits to owning a share of a plane. Do you get frustrated waiting in long lines at the airport, going through the hassle of checking in and flying at obscure times of day? All of those problems go out of the window when you own a share in your own aircraft.
Most internal flights only need about 4 hours notice and you can just go. You’ll need 24 hours notice for international flights but still, you can just jet off somewhere on a whim. Most companies don’t charge you extra for taking passengers with either so it’s great for going away with family and friends whenever you like.
The other major benefit, and the reason that it makes a good investment, is that you could also rent out your miles to somebody else. If you’ve got 50 hours of flight time or more, you might not use all of that in a year so why not make a bit of money out of it and charge others to use it.
This is the major benefit of these kinds of timeshares. While vacation home timeshares locked people into extensive contracts that were almost impossible to get out of without the help of a lawyer, aircraft timeshares don’t have that issue. The standard contract usually lasts 5 years, after which you’re free to get out of it if you don’t want to renew it.
Could an aircraft timeshare be the right investment for you and your family?