Cost to renew hangar lease? Anyone renewed hangar lease?

[charosenz]

I am looking to hear from anyone who has renewed their hangar lease. I have a chance to lease a hangar for 30 years. The price is all up front, not monthly. Just to be upfront, I am not looking for the usual "it depends" reply. I hope that came across as politely as intended and makes sense.

Thank you.

Charlie

 

[Freemasm]

I am looking to hear from anyone who has renewed their hangar lease. I have a chance to lease a hangar for 30 years. The price is all up front, not monthly. Just to be upfront, I am not looking for the usual "it depends" reply. I hope that came across as politely as intended and makes sense.

Thank you.

Charlie

staying away from your danger words;

Obviously I don't know if you have to pay an additional land lease, property insurance, maintanence, etc; but in general, hangar rents increases are far exceeding inflation. If the up-front lease $ is anywhere close to the cumulative cost of rent over that time, I would personally do it. You could do the math and delta what you would have made with that money on a different investment; however, I'd consider the LT lease my personal hedge against a crazy market. Everyone is differrent. My $0.02.

BTW. My hangar rent in Orlando has doubled over the past couple of years. Thanks S-Air!

 

[BenNabors]

There is an equation for that in Excel. In any cell, type in: =PV(rate, period, pmt, Future value, type) Rate is the interest rate per period, period is the number of years or months if it was paid monthly, pmt is period payment, future value is the ballon payment, type is null (hence blank).
at a rate of return of 4%, 100 per month, zero future value, the current present value is $20,946.12.
If the monthly payment is $400, the value is four times that, $83,784.50
Assumed interest rate makes a big difference. I assumed 4% as the inflation rate. If it were a loan at 11%, the present value would be 42,000 per $100/ month. With no time value of money it would be 360 payments x $monthly rental cost.
Hope that helps.

 

[MacCool]

To me, this era of the US economy feels like the worst possible time to lock one's self into a long-term non-residential/non-commercial estate commitment whose only value is possibly saving some money and has no possibility of achieving any equity or ROI. In the meantime, you'd be locking yourself into a 30 year commitment which is one medical exam away from being a pointless financial position. I had a similar opportunity a couple of years ago and my accountant was horrified that I was even considering it. IMHO, YMMV, etc etc

 

[thehagg501]

Correct me if I'm wrong here but if the mentioned worse case were to happen, couldn't you sub this out to someone else?
Is there room for multiple planes? See where I'm going with this?

 

[RV6_flyer]

One airport that I use to be based at had a "Land Lease" for hangars that were owned by the individual. The land lease was locked in for a number of years then the price could be changed. IF the hangar was sold, the new owner may or may not get the same "land lease" deal.

Another airport one could buy / build a hangar for a set number of years. They could also sell their hangar and lease but at the end of the land lease, the airport owned the hangar and the current owner would now be paying rent to the airport or be required to move out.

 

[charosenz]

Thank you all for comments. I really did not have any danger words or danger topics, I was just trying to clarify what I was really looking for; which was folks first hand experience with renewing a lease. As far as a topic of whether or not it makes sense, or there is value in leasing, that is a great topic, and there are some very good comments here for folks who are interested in that to consider.