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  #21  
Old 04-29-2006, 11:23 AM
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keen9a keen9a is offline
 
Join Date: Jan 2005
Location: St. Louis, MO
Posts: 242
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I'm very confused. I won't borrow money for toys either, but my RV-9 is no more a toy than food and water!

I will probably borrow a bit so I can buy a new engine when that time comes, but the rest will be cash.
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  #22  
Old 04-29-2006, 11:46 AM
Chris Meredith Chris Meredith is offline
 
Join Date: Oct 2005
Location: Northern Virginia
Posts: 23
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The only part of the project that really concerns me is the engine and avionics - and unfortunately one comes right on the heals of the other. I can stay ahead of the kit costs, but there's no way I'm going to have $30,000+ laying around burning a hole in my pocket based on our current income. So, I've got two possible plans in mind. One, is to take out a line of credit on my house. It's appreciated so much in the last few years that I'd hate leave that resource untapped.

My other plan is to use my wife's future income to pay off a short term loan. Now that the kids are getting older, she'll be going back to work within the next few years. I keep that particular plan to myself though! Her income is supposed to pay for the kids' college - not my airplane. The trick is not to talk about her income and paying for my airplane in the same breath. Now, I just hope she never reads this!

So, I do intend to go into some temporary debt toward the end of the project. The alternative would be to wait. And although I'm healthy now, you never know when something may happen that causes you to lose your medical. So, I say don't be afraid of a little debt as long as it's manageable. After all, we're not talking about a plasma TV, an extravagent vacation, or a new car - this is a lifelong dream! It's not just a hobby! In my view, there are four things worth going into debt for: an education, a house, a dependable used car, and a dream. Is going into debt the smartest thing from a practical standpoint? Certainly not. But then neither is building a plane in your basement

Chris
RV-7
Empennage done - Wings on order!
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  #23  
Old 04-29-2006, 12:27 PM
jany77 jany77 is offline
 
Join Date: Sep 2005
Location: monterey ,ca
Posts: 105
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im doing pay as you go this way i dont need any loan ,which i can get because no credit history at all ,so i pick up rv-3 is cheap for me and if someone needs ride i can always rent plane anywhere
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  #24  
Old 04-29-2006, 12:28 PM
Deuskid Deuskid is offline
 
Join Date: Jan 2006
Location: St Louis, Mo
Posts: 178
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Quote:
Originally Posted by szicree
I'm sure most know this, but for those that don't: Most low rate offers contain a lot of fine print, not the least of which is a clause that allows them to raise thr rate through the roof if you're late on a payment. This includes late payments to OTHER creditors. I'm sure most folks on here pay their bills on time, but if something gets lost in the mail you can find yourself paying 25% instead of the free loan you planned on.

Also, many have a clause that the initial use is zero interest but additional purchases have an interest rate applied and guess what: payments go first to the 0 interest portion.

I'm a financial planner and I've seen how devistating credit can be to misuse [mostly unintential].

I use several credit cards many times each month... always, ALWAYS pay them off in full. If you aren't going to pay them off in full each month - do yourself a favor and cut them up and live using checks.

Ultimately, in our society you end up in one of two camps. You either borrow money or loan it to others. I've never seen anyone make money by borrowing it.

John
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  #25  
Old 04-29-2006, 06:35 PM
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Jamie Aust Jamie Aust is offline
 
Join Date: May 2005
Location: Brisbane Australia
Posts: 568
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Looking at the last RVator I see a few RV's that have been 14 + years to build. Now that is a SLOW build , but they have done it !!!
I hope to have mine built in 6 - 8 years, I dont have all the funds now, but I have no debt so far. Shop/tools/Emp all paid for. I plan to get 50% cash and the other 50% credit, and take about 1.5 - 2 years on each sub kit.
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  #26  
Old 04-29-2006, 06:54 PM
ged380 ged380 is offline
 
Join Date: Mar 2005
Location: Australia
Posts: 22
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So far everything for us (my dad and I) has been cash. When we decided to build an RV we started to save and had a pretty good funds supply when we ordered the tail kit. Since then He has sold his cessna 150 and I have sold my sports car to pay for the RV. The cost so far is around 80K. This includes all the tooling etc. We expect the total bill to be around 150K. Yes that right, flying is expensive downunder. If things keep going the way they are I expect we should be able to do the entire project with cash. If we get to the end and are a few $$ short we will take out a small loan to finish the job. I dont really want to have to borrow to pay for the RV but I would rather do that than have it sitting idle while we save some more money.
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  #27  
Old 04-30-2006, 11:54 AM
JACKR JACKR is offline
 
Join Date: Jan 2005
Location: McLean, IL. 1IL9
Posts: 75
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Ultimately, in our society you end up in one of two camps. You either borrow money or loan it to others. I've never seen anyone make money by borrowing it.

John[/quote] DEUSKID (above)

Sorry John, but I just can't let this go. I could write pages about this but don't want to give that much time and if you were anything but a "Financial Planner" I'd just pass it by. If you want to make any real money you will belong to BOTH "camps". Plenty of money is made borrowing it via tax savings and increased net worth. I can't believe as ANY kind of "Planner" that you even use the word "NEVER". Sure isn't one that I use much.

Just for the record, I paid cash for my 7 . Wonder where that money came from?? Maybe from some I borrowed to make more Glad I'm not your client!
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Last edited by JACKR : 04-30-2006 at 12:05 PM. Reason: quote
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  #28  
Old 04-30-2006, 01:22 PM
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briand briand is offline
 
Join Date: Mar 2006
Location: Grand Rapids MI
Posts: 742
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LOTS of overtime!! Maybe a 401K loan for about half the engine and some instruments.
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  #29  
Old 04-30-2006, 01:41 PM
CraigC CraigC is offline
 
Join Date: May 2005
Location: Mesa, AZ
Posts: 209
Default Paying for the kit

I agree with that. A little OT here and there when I want to add funds for building. I sold a house in July and that is where some is coming from. Right now I am building the empennage and my workshop at the same time. But I will NOT use a credit card no matter how tempting. NAFCO in Florida makes loand on kits and engines.
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  #30  
Old 04-30-2006, 03:25 PM
RV_7A RV_7A is offline
 
Join Date: Jan 2005
Location: Round Rock, TX
Posts: 807
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One word here...

"NAFCO"

They have been great. Want. Need. Gotta have. Thats the story of my life and I must say I've pretty much had it all. You only live once.

-Jeff
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