Thinking of getting my first drone. But one thing is holding me back..

Decent is not unlimited in the USA. FAA says 400 foot altitude from take off point. It also references taking off from structures (land and mountains included) that are already above the surrounding area. In that case you are limited to 400 feet outward from take off point.

So if you take off from a 1000 foot tall building, you can go up to 1400 feet in a cone 400 feet wide around take off point. Flying within the cone doesnt seem to have an restrictions, so you fly out 300 and all the way down it seems.

The 400 ft rule and its related references to structures (which means antennas and buildings, not mountains), only applies to Part 107.

For recreational flight, the FAA says very little, because it is constrained by the FAA Modernization and Reform Act of 2012. It simply requires adherence to community-based rules, which most people take as referring to AMA safety guidelines. Those guidelines do not mention structures, probably since model aircraft are not expected to be buzzing buildings. They also only impose a 400 ft limit when within 3 miles of an airport (subject to agreement otherwise with the operator). Outside that distance, no altitude limit is mentioned, and the AMA has been quite consistent that there is no 400 ft AGL limit if operating within their safety program.
 
In a nutshell:

1. FAA suggests flying at 400 ft AGL or less if you're flying recreationally (i.e., "hobbyist"). It's not a rule, it's a guideline (and mostly a good one). For hobbyists, there is NO law or rule that limits you to 400 ft altitude (specific airspaces or NFZs notwithstanding).

2. The suggestion by the FAA regarding 400 ft clearly states AGL (Above Ground Level). They do NOT suggest 400 ft above TAKEOFF POINT. This means if you take off and climb to 400 ft, then ascend to 700 ft because you're flying over a 300 ft hill, you are STILL at 400 ft AGL because you're 400 ft above the top of the 300 ft hill. The top of the hill is now your ground level.

3. The default height limit set in the bird is 400 ft but you can increase this in the settings. The "hard limit" (i.e., the maximum) you can change it to is 500 meters (about 1642 ft).

4. If your goal is to fly at 2500 ft AGL, the only way to do that is to take off from a point that's 858 ft above the ground that you want to fly over, ascend to 1642 above your take off point and then fly over ground that's 858 ft lower than your takeoff point. If, on the other hand, you want to take off and ascend to 2500 ft above your takeoff point, that's not going to happen, at least not with the Phantom series, thereby making the above points moot anyway.
 
Guys this is easy:

The Phantom can climb 500 meters from your starting point. If you try to go higher, it won't.
 

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