Why Getting a Private Jet May Not Be A Good Idea?
Getting your hands on a private jet may seem like the best thing in the world, as that is considered the epitome of luxury in our times. However, while for some a private jet may offer a lot in terms of convenience and ease, for you it may become a hassle to even take care of it.
But, if you find yourself having more than enough money to afford a private jet, then you need to ask yourself the following questions to ensure you are getting one for the right reasons.
Because Others Have One
If the only reason you are tempted to buy a private jet is that other people in your circle, including your friends or neighbours, have one, then it is entirely possible you may find that jet not providing you nearly as much utility as they enjoy from their jets.
Before getting a jet, assess your flying needs, and if you are flying out as much as them or even more so, then you may need to get a private jet after all. However, the best way to move forward is to hire a consultant who can make such an assessment for you. This consultant would not only tell you whether or not a private jet is the best alternative, but also tell you which aircraft company offers the best one in your range.
You Think It’s A Great Investment
Many people often mix how certain assets operate, and although most assets depreciate by a certain value, there are some that are depreciating at a much faster rate compared to other assets.
From an investment perspective, you need to select those assets which don’t depreciate as fast, and unfortunately private jets are currently categorized as fast-depreciating assets. This does not meant they will lose value drastically. However, if you are looking for returns from your investment, then this may not be the right one for you as there is a lot of room for significant losses.
You Want to Turn It into A Business
It is common practice by private jet owners that they charter out their planes to those who can pay for it, earning so much that it becomes a profitable business venture for them. But that may not happen for you, and if that is your sole motivation to purchase a private jet, then you need to know that most of the time you will only earn enough to cover some of the operating costs of the aircraft, and maybe not even that considering the high depreciation costs associated a private jet.
Plans of Starting an Airline Business
You may think owning one and subsequent private jets is the first step to starting up your own airline business, but that is wishful thinking. Starting up an actual airline business takes a lot of capital investment especially in the initial stages and owning a couple of private jets is not enough. Also, keep in mind that many airline businesses are incurring a loss as of now, so it’s not as profitable a business venture as you think.
It Would Cut Down on Your Flying Costs
We understand that, for a frequent flyer, moving around in first class can become a very costly thing and it may make more sense to you to simply purchase a private jet once and for all. However, the cost of owning and maintaining a jet would be much more compared to a lifetime of first-class travels, so this is also not a good enough reason to be doing it.
You Suddenly Have Enough Money
For business executives, bonuses can sometimes be huge, and if you find yourself suddenly in possession of a lot of money, then buying a jet may have become quite affordable for you. However, keep in mind that a private jet also demands a lot in maintenance costs, and you need to have enough running finance to be able to afford that. Even selling your aircraft when you find it impossible to maintain it would make you lose money, as aircrafts lose out on their value like any other asset.
It may be better for you to simply charter a plane when you are travelling a lot as that may truly be a cheaper option for you. However, hiring a consultant to guide you on the best course of action would be the best way forward.
More in The Jet Set
5 Easy Ways To Choose A Savings Account That’s Right For You
Saving is a good habit but even more difficult to practice than it seems. If you’re thinking of putting some funds...September 28, 2018
Online Shopping – Convenience Or Hassle?
Online shopping has become an essential part in the lives of many people. The hectic lifestyles we lead has made it...September 27, 2018
5 Most Prolific Actors In Hollywood History
While we like seeing a variety of actors in different roles and movies, there are some who are just so good...September 25, 2018
How to Save Money On Utility Bills
The rising costs of living are forcing many people to cut down on the expenditure of for types including utilities. Cutting...September 24, 2018
Incredible Ways To Shop With A Tight Budget
Shopping is fun and easy, especially if you have money to spare. There will be no problem with you going all...September 24, 2018
The Beginner’s Budgeting Guide for Big Spenders
If you’re a big spender, raise your hand. Big spenders love to treat themselves to shopping rounds, fine dining, and all...July 16, 2018
5 Money Mistakes To Avoid If You Want Financial Independence
My six years old returned from school one day and asked: “Mommy, what is the cost of money?” I looked her...July 15, 2018
5 Tips To Getting Huge Savings When Shopping Online
Online shopping might be one of the most revolutionary inventions in the 21st century. In addition to the convenience of getting...June 16, 2018
How Can You Trust Your Financial Advisor?
When matters are related to investing and planning for the future, a number of us need external help, and it is...May 22, 2018