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GA plane as inflation protection

Asking for a friend. Assuming real estate, stocks and precious metals are already covered, and my friend is not exactly the art collector type:

With all the „QE“ money printing going on and interest rates remaining at zero would it make sense to allocate some cash (around 100-200k€) to buy a C172/182/SR22 etc., use it for IR training/charter/personal flying and if desired sell it again in a few years?

My impression is C172s/182s are pretty liquid, while a early SR22 fares better with IR touring clients.

Maybe a Diesel 172 would be a good compromise?

Prices on the used GA market will probably come down a bit too…

https://www.trade-a-plane.com/search?make=CESSNA&model_group=CESSNA+182+SERIES&model=182T+SKYLANE&listing_id=2380090&s-type=aircraft

always learning
LO__, Austria

Off topic: Check the location of the aircraft you posted

On topic: I was always under the impression that unless you buy a really cheap aircraft, in the long run they lose value (unless they are collectibles), plus you have the issue of having to pay money for maintenance, insurance and such.

Last Edited by Dimme at 30 Mar 18:14
ESME, ESMS

In times past, just about any GA aircraft over ten years old would appreciate every year… for decades. That ended about 15 years ago and my sense is that planes priced under 100K are generally a stable but non appreciating asset. Some types (e.g. middle aged $60K single engine Cessnas, big engined Cubs, RVs) continue to appreciate in many markets. I think its a great place to put hobby money when compared with huge depreciation seen on many other hobby expenses, but not an investment. More expensive planes have less stable market value and are more expensive to maintain in condition, and therefore are a worse place to park money.

PS Corona, California is an area to the east of Los Angeles with a nice little airport known for low fuel prices and being the home of Aircraft Spruce.

Last Edited by Silvaire at 30 Mar 18:35

I have shares (20% and 50%) in two niche aircraft. The flaw in buying for investment is the maintenance cost. Out of annual, low engine hours per annum, high engine hours, unexpected AD, spares availability, avionics updates, hangarage, make GA aircraft far too expensive to own IF not for the pleasure of flying them.
£/€/$80,000 artwork, in a bank vault, will cost much less than a Cessna to keep.
And won’t be threatened by fuel disappearing in the near future.

Last Edited by Maoraigh at 30 Mar 19:40
Maoraigh
EGPE, United Kingdom

I agree an “investment” isn’t the right term for it, but if you could sell for more or less what you paid then that would be ok. Mx, upkeep, fuel etc.. obviously are big expenses but that’s the cost of flying.

Silvaire wrote:

Corona, California
What a catchy name in times like these.

Maoraigh wrote:

And won’t be threatened by fuel disappearing in the near future.

I’m thinking a diesel 172 would work well.

always learning
LO__, Austria

I don’t think any GA airplane is a good investment, in the strict sense of the term. If you really want to look at it that way, however, I would suggest looking at the most bog-standard plane you can find. Here that’s a C172, in Europe it may be a DA40 or similar, don’t know. Ideally glass. You need something that’s attractive to flight schools. Nothing fancy like diesel (again, I write this from a US POV).

As for KAJO / Corona. We just had one of our airplanes painted there and I flew her home last week. Was very tempted to call KHHR TWR saying ‘inbound with Corona…’

Agree with all the above. I could sell my TR182 for more or less what I paid, maybe $10K less. But I have spent maybe $150K on upgrades, engine overhaul etc… not counting routine maintenance or the basic cost of flying. Not complaining, but it would be a pretty cr@p investment.

LFMD, France

I own two aircraft which have nearly doubled in value, but that still does not cover maintenance hangar and insurance over the period.

Unless you are flying 150 hours a year as the sage says about if it flies, floats or etc better to rent than buy!

Despite the current circumstances that 1957 straight tail 182 sold within a week, so some types are quite liquid, perhaps more than real estate.

Oxford (EGTK), United Kingdom

If you can buy a Cub or old C172 with debt you will get well paid if inflation spikes on both the asset and the financing (assuming you manage to fly it and survive while keeping a wage and you don’t sell in the heat of the moment)

Last Edited by Ibra at 31 Mar 09:07
Paris/Essex, France/UK, United Kingdom

The carrying cost of the investment is far too high to think of even an appreciating aircraft as an investment. All aircraft are liabilities (assuming you take care of them).

(Posted without reading that point has already been made… by everyone!) :)

Last Edited by WhiskeyPapa at 31 Mar 11:49
Tököl LHTL
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