Which aircraft kits from Europe

[scan]

I have just sold my house in UK have about 200 k in pounds .I wanted to exchange the money over but the pound has taken a dive recently .

 

 

My idea is to import 2 or 3 kits from the UK and keep one from my self then sell the others to recoup some money .

 

 

Is there any sort after aircraft in UK / Europe I can import and sell quite easy in Australia?

 

 

[Guest ricardo]

Scan,

 

A couple of questions you would need to ask -

 

1. Do you have a 'value-add'? (e.g. perhaps there is a way you can declare them as personal goods and avoid duties)?

 

2. Are you intending to become a supplier in oz?

 

If the answer to both is negative, then you'd need to ask why anyone would buy from you rather than the supplier.

 

That aside, the Escapade might go well here (easy for me to say!!):thumb_up:

 

 

[Guest pelorus32]

Should declare my conflict of interest first - I'm an agent.

 

Having said that I can say the following (excuse me if I'm blunt - born like that):

 

You'll pay GST on all imports - there are no duties;

 

Most reputable manufacturers in Europe have an Australian agent - they won't want to sell to you - they sell by way of their agent;

 

Having said that by all means try but I think you'll find the costs and the complexities outweigh any profit you might generate from a "one-off". Your "customers" will also off course expect your support in the building of the kits and in ensuring that all the documentation is in place for RAAus rego.

 

Also as I understand it the British regulatory regime doesn't make British a/c attractive under our regimes.

 

Best of luck.

 

Let us know how you go.

 

Kind regards

 

Mike

 

 

[djpacro]

I suggest that you have a very close look at the total £ that you'll spend and the value in $ when you sell. For example, I see an apparently nice Pitts S-2A for sale on pilotweb for £49,500. That's $104,000 before you start dismantling for shipping. See that other thread for costs of shipping etc etc. Doubt whether anyone would pay more than $100K for it after all of that. i.e. it could cost you a lot of money as well as the pain of doing it.

 

 

[skydog]

DONT FORGET THE EXTRAS COSTS

 

Dont forget to look at all aspects of importing and building.

 

You will have to pay GST for sure.The cost of your time and trouble may not be worth the effort and return.

 

From what I have learned the aircraft costs in Oz are not much more expensive or the same as buying them overseas and shipping them in, definitely in the case of the US and NZ.

 

Freight is a huge cost plus oil and war surchages coming thru the Suez past those pirates etc.

 

What has the exchange rate done to the pound lately, has it dropped at the same rate as the AUD or less? If much less then maybe worthwhile but obviously the sums have to be done.

 

Obtaining air worthiness ? cost of advertising,? will it sell in this current economic environment?

 

You may do better just by bringing your pounds in and making money on the FX rate and buying a ready to go plane here, certainly a lot less effort?

 

 

[Guest Neilm1955]

I think you will find the kits are dearer Over there.

 

I bought a built Savannah which the guy had paid 18000 pounds for. He built it and I bought it for 8000 pounds. Big loss. Good for me though.

 

I would bring the cash and convert it here. Its all relative, everything has taken a dive.

 

Neil

 

 

[scan]

Thanks for your replies

 

 

 

yes the sums don't match up that well.

 

 

 

I'll just have to take a hit on the exchange rate

 

 

[Guest basscheffers]

Man, don't I feel you pain... I was in the same situation just over a year ago. Sold the house and after lots of stuff-ups and a very long settlement, the day finally came. My solicitor told me how much money he had for me and I booked the deal with my FX provider at $2.50. Sent the instructions for where to wire the money to my solicitor and got no response. Turns out before he could wire the money the Law Society stepped in and shut him down, with all my money frozen in his client account. Two months and thousands in legal fees later I finally had it released to an exchange rate of $2.24.

 

You say buying from the UK or elsewhere in Europe but have you seen the euro exchange rate lately? Man, that currency is strong; almost parity with the pound and over 2:1 against the AUD.

 

Sounds like more hassle than it is worth, the margins would be very tight - if you can make a profit at all...

 

 

[Guest Redair]

Scan, just a quick thought on the subject... have you checked out the import regulations with DOTARS? If it is anything like moving a car or mororbike from the UK to Aus, you will need lots of paperwork, approvals and could face import duty too, (like the luxury car tax). Sounds like a lot of hard work and expense. Why not use the money you would spend on 3 kits, and just buy one really good one for yourself? Or even an average one, and kit it out with gizmos!!!

 

Redair.

 

 

[skydog]

Buy one here

 

I would buy a plane here.

 

Have you checked out the aircraft trader lately?

 

Prices are comin on down due to the economic crisis, the boys are sellin their toys and paying off their share trader margin calls or topping up the super. Yipee for you and me.

 

I Just bought a plane at a real good price and no doubt the prices will get better next year.

 

 

[Guest basscheffers]

Are you rejoicing in other people's misery, skydog? ;)

 

So, whatcha get and for how much?

 

 

[skydog]

I have lost investments in this downturn as well so just trying to recoup.

 

Bought an RV at about 15% under market.

 

Plenty of planes in all categories out there but I do feel sorry for the Jab owners battling to sell against the new low priced J20.

 

 

[Spriteah]

Scan, You wont take a hit on the exchange rate. Six months ago the AUD was at 0.98 to the USD. It is now in the high 0.60's.

 

The exchange from the pound to AUD would give you relatively good transfer. If I were you however I would put a heap of my money into top 100 shares. Keep enough to buy a good kit or completed plane. Watch the share market for the next few years and when it recovers you would be in a pretty good spot.

 

Or just put the money in my care. I'll look after you!!

 

Jim.

 

 

[Student Pilot]

If I were you however I would put a heap of my money into top 100 shares.

That's gotta be a new year joke?

 

 

[Guest basscheffers]

That's gotta be a new year joke?

Actually, it is a great time to buy now - as long as you are looking for a long-term investment. Which really is always the case with shares. And just buy into index tracker funds; over the long term (i.e.: super!) managed funds never outperform the market, in fact, they almost always under perform.

What they can be good for, though, is short term investments in a fast-growing market if you can handle the risk. Like a recovery after this recession. Just don't get too greedy - get out before your star dot-com goes bust again!

 

Well, that's my theory anyway.

 

 

[Student Pilot]

Actually, it is a great time to buy now -

So your on commision? No doubt giving such advise you'll have just spent heaps buying, how much have you spent buying shares and stock?

 

 

[Guest Neilm1955]

It has been said that The Stock Market is designed to transfer wealth from the Impatient to the Patient.

 

NM

 

 

[Guest basscheffers]

Well, I over the past year I have been buying quite a lot just like most people; it's called "super contributions." :P

 

Aside from that, a couple of months ago I reviewed my kids' portfolio and sold some shares that had not gone down too much and used that to buy other ones which were way low. (like BHP at the time) For now that strategy has paid off with less loss than the overall market. But you need to remember that it is not a loss until you sell them for real money!

 

Mind you, the majority (two thirds) is in index tracker funds which just move with the market.

 

Neil: excellent quote!

 

Personally, I think shares are stupid. Some piece of paper with a value loosely based on what people think a company is worth, with a bit of a cash payout if the company makes a profit. But as a place to put your excess money long term to make into some more money, you can't beat the returns.

 

 

[Spriteah]

I thought Student was referring to my comment about let me look after your money which of course was a joke.

 

As to my comments for shares it is a great time to buy. I am investing all money mine and borrowed I can get my hands onto.

 

Jim.

 

 

[facthunter]

Patient.

 

Like your comment NM.

 

Can't see how we would fund projects and ventures, without the issue of shares. The contortions and deceptions are the problem, in the trading environment. You don't just have a bit of paper, You have a share of the business, with all the plusses and risks that it entails.. It's been a bad year. Panic & greed run the stock market,, but everybody knows that.. Nev..

 

 

[Guest Neilm1955]

If there were no such things as shares, we would all have a little plot of ground that we lived on trying to eek out a living from growing our own veges and milking a cow. But we would have to give most of it to the Lord who owned the land.

 

Shares are wonderful, so is credit, just like everything else in the universe, you gotta know how to manage them properly, and know the changes of season and what to do when it changes.

 

Wish I knew more about how to do it.

 

NeilM:

 

 

[Guest basscheffers]

I don't see buying public shares on the market as investing in the company. All the company ever did was see the $10 when they sold them to the first person. The $100 I pay for them is nothing to them - except to provide a reason for the first person to buy them in the float.

 

If you look at many privately held companies, there it makes sense. The shareholders put their money on the line to fund the company and they get big dividends from the profits that happen within a couple of years and make their money back big time. (or lose it all, of course.)

 

If I buy BHP shares now, the dividends are a fraction of what I would get putting the same money in a term deposit. I paid $39 for BHP almost a year ago, they paid about A$0.80 dividend - a measly 2% return that doesn't even beat inflation in a year of record profit for them. (I have since bought more BHP at $25.) There is no way I'd ever make my money back on dividends, the only way for me to have a good return is to find some other sucker who will pay even more for them than I did.

 

And why would they pay more? Beats me...

 

I am not complaining, I am all for investing in the stock market. But it sure makes no sense to me...