Buy a share or pay for training?

[fireflyer]

Hello to all, I've been reading this forum for several months now and finally have all my cash to go thru CFII, w/ no loan to pay back. My neighbor has a Bell 47 he's going to sell and suggested that I buy a share of a ship rather than just go to flight school. There is a flight school here where I live that trains in a 47. So which is better or how do I figure costs?

[Goldy]

So which is better or how do I figure costs?

 

Well, as a renter paying by the hour you know what the cost is. Its probably nailed to the front door of the flight school. As an owner, you really have no clue. You have some historical numbers, but the valve could stick tomorrow and its another 2K, or the cable that runs down to the tail gets frayed and its another 2K...I could go on. I love the old B47, but its not the most efficient or cheapest way to learn to fly.....also, your training is going to put 200-300 hours on the ship....so what major pieces will need to be overhauled in that time frame ? ie. if the engine only has 100 hours left before overhaul...well thats about 50K to replace.

 

Just something to think about.

 

Goldy

[500E]

goldy is correct, you have fixed hourly cost if hiring.

The unknown creeps in if you buy, personally I would have saved if I had purchased a 300 to train in and it gave as little trouble as the one hired.

The other thing to remember is there is a residual value in the ship when you finish training, also if you purchase as an individual there is the low hours put on the Hobbs, + and quite important YOU know if it has been abused, no hoping the last hirer did not over rev\stress & forget to mention to owner.

Do not forget you have to insure as well.

[rick1128]

goldy is correct, you have fixed hourly cost if hiring.

The unknown creeps in if you buy, personally I would have saved if I had purchased a 300 to train in and it gave as little trouble as the one hired.

The other thing to remember is there is a residual value in the ship when you finish training, also if you purchase as an individual there is the low hours put on the Hobbs, + and quite important YOU know if it has been abused, no hoping the last hirer did not over rev\stress & forget to mention to owner.

Do not forget you have to insure as well.

 

As a student, your insurance is going to hurt. Keep in mind that a flight school does have an economy of scale that you as an individual owner will not have. Plus you will have to name each instructor on your policy, or have an 'open pilot' clause in your policy low enough to cover them. If you are buying a share of the helicopter, you will need to have an agreement with your partner(s) about sharing and priorities. In writing is strongly suggested. As for maintenance, if the 1200 hour inspection and the engine have better than mid time left on them, it shouldn't give you too many surprises, unless it is a turbo charged engine. As an owner you can preform preventive maintenance on it, like lubing, oil changes, etc. That will help you keep your costs down.

 

The BH47 has a reasonable safety record. It would be better, but they are used a lot in ag work and other specialty work that has a higher accident rate than pleasure flying and instruction. This will affect your insurance rates. Plus at the end, even if it is run out, you will still have something of value.

[fireflyer]

Thanks to those responding. I didn't explain very well. It's true about the B47 used in ag work, which my neighbors was. I'm not really interested in something older, but something w/ low hours and more up front costs. I didn't/ don't know how the insurance deal works so that was of great help. I'm just better at buying than renting, but don't know enough to make this kind of decesion on my own. Also finding something close enough to fly/train in would make all the difference.