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Transition is going to crash housing prices in metropolitan areas


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2012 Feb 18, 3:15am   3,079 views  1 comment

by dunnross   ➕follow (1)   💰tip   ignore  

Transition Terrafugia - the new flying car. No more need to live close to your work. You can live anywhere you want, even in the ex-burbs, and fly to work in less than 45 minutes:

http://www.terrafugia.com/Montage.html

#housing

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1   drew_eckhardt   2012 Feb 18, 9:59am  

Nope.

Buying the plane takes $280,000 and if you don't have cash it'll be something like a 20 year loan with 20% down at 7.5%.

Then there's insurance that's likely to run $5K a year for all hazards (insuring something which costs as much as a house and is likely to crash isn't cheap).

That engine is rated 1500 hours between over-hauls so every four years you're spending $15,000 which you could call $4K/year.

$1000 isn't out of line for an annual inspection.

With personal property taxes you end up at a $3000/month total.

With 1.25% property tax and 3.75% 30 year loans that covers $600K of house price.

This ignores the mandated overhaul and replacement intervals on other time limited components.

It ignores traffic being worse with bad weather (it can take a few hours to make it the 10 miles across Lake Washington outside Seattle, WA with some snow or too much rain) and that flying in those conditions (when otherwise prudent) requires an aircraft equipped for flight in instrument conditions plus the appropriate rating and currency.

It also doesn't apply to people who lack the cajones to fly themselves.

If you can pass an FAA medical (anti-depressants and DUI convictions kill that) and wanted to you'd be much better off financially with a 1960 Cessna 172 and a couple of used 3-series for the non-flying parts of your commute and that hasn't put a lid on home places around desirable places to work.

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