5 Points to consider before buying a racehorse!
Posted: 7th Jan 2019
It's that time of year again where the Australian Thoroughbred Yearling Sales start to kick off. Starting with the Magic Millions on the Gold Coast January 9th.
Whether you have been captivated by the brilliance of Winx over the last few years or have always been contemplating about becoming an owner in “The Sport of Kings”, race horse ownership throws up many concerns.
Breeding and the horses constitution play major roles for syndicators and bloodstock agents when they are purchasing yearlings, we have put together 5 other key points to think of when considering Race Horse Ownership.
1. Dollars and Cents
This is a major thing to consider when deciding to purchase a share in a racehorse and will vary for each individual. You should be setting out a rough budget on how much you would like to spend. Initially on the actual purchase price of your share and then how much the ongoing upkeep costs of your percentage will be. This will obviously vary depending on the percentage of your ownership.
Yearlings can fetch anywhere between $1200 (Takeover Target) and up into the millions and everywhere in between so finding something that meets your financial situation is vital.
2. Patience
Owning a racehorse can be an emotional and exciting venture that will at times thrill you and at times leave you in despair, often referred to as "THE HIGHs AND LOWs OF RACING!". Upon purchasing your horse, if it is a yearling, the excitement may overwhelm you. You will want constant updates and be expecting that it will be ready in time for the spring carnival and the first two-year old race of the season.
Australia is well known for producing speedy two-year old types who can be up and running in the early two-year old races. However, reality is horses come in all shapes and sizes and some take longer to mature than others, both mentally and physically. The breed of your horse can play a big part in how long it takes to mature. Although your horse may not be at the races as early as you would like, it is still exciting watching your horse progress from training to trials and eventually to the race track!
3. Getting Involved!
So you decided to finally bite the bullet after years of following the sport and buy a racehorse. You watched the rise of a horse such as Buffering, bought for $22,000, go on to win over $8 million and take on the world and thought to yourself, 'how easy is this'?
The dream of owning a champion is what captures the imagination of new owners and keeps existing owners coming back for more. Don’t be too down heartened though if your horse is winning races at the country tracks around the country as this is also a great thrill.
No matter the track or class of race, if your horse finishes first past the post, you’ll feel on top of the world. Again, it is all a part of the highs and lows of racing!
4. Trainer
It is important to note who will be training your new investment! If you have a favourite trainer then this may be a determining factor in whether you pick a certain horse to buy a share in.
You may only want the best horseman in the country to train your future champion or you may have your eye on an up and coming trainer who you think is rising through the ranks.
Further stats on Australian Trainers can be found here https://www.punters.com.au/stats/trainers/
5. Why Syndication ownership is best for you?
Owning a thoroughbred through a licensed syndiciaton can be one of the most cost effective ways of enjoying ownership. Most syndicators will offer shares from as small as 2.5%. We suggest getting in contact with the syndicator to discuss estimated monthly fees for your percentage of ownership before purchasing a share.
Australia has many thoroughbred syndication companies. One of the main points to note is where they place their horses. Most syndicators have their trainers that they commonly use, which ultimately may decide in which state your horse will have its racing career. A lot of syndicators now will use multiple trainers around Australia.
All syndicators are required to have an Australian Financial Services License Number (AFSL) and provide a Product Disclosure Statement so they are accountable and transparent in all aspects of the ownership.
Now you are equipped with the knowledge to help you make the first step into ownership of a racehorse. Good luck and Happy Racing.
