Investing in a racehorse can not only make you rich, but you can also have a lot of fun along the way! Hundreds of people invest in the ‘sport of kings’, which offers the ultimate status symbol. And you don’t have to be super rich to invest in a racehorse either – there are several options available, such as syndicates, which means you won’t have to part with bundles of cash.
Racehorse investment can be one of the most exciting and easiest ways to generate big money – for example, at this year’s Cheltenham Festival, racehorse Lord Windermere took home more than £327,000 for winning the Cheltenham Gold Cup. Owning a racehorse is also an undeniable adrenaline rush. With the first placed horse getting 60% of the total race’s purse, it’s a fast-paced, brilliant sport that can make investors rich in a matter of minutes. With the world’s wealthiest people, famous A-listers such as Steven Spielberg and the Queen herself amongst those with investments in the sport, owning a thoroughbred racehorse is a stylish and supreme status symbol.
So, here’s what you should consider if you want to invest in a racehorse:
1. Do you like taking risks? Investing in a racehorse can be both exhilarating and fruitful. Successful racehorses can make millions, although owning a racehorse has a relatively high element of risk attached to it as the horse is never guaranteed to win the race.
2. Should I go it alone? Racehorse ownership falls into either sole, syndicate or co-ownership. If you don’t want to go it alone, co-owning a racehorse or entering a syndicate can optimise maximum return for less up-front cost.
3. Initial cost: The average cost of buying a racehorse for sole ownership is around £20,000 (although good horses can be bought for less), so you’ll need to make sure you have a bulk sum of money to part with up front.
4. Time: If you’re buying a yearling horse it will need to be trained to reach its full racing potential, which can sometimes take several years. Persevere and you could land some hefty winnings, but if you need a quick return on your money, perhaps consider investing elsewhere.
5. Continued costs: Racehorses are not cheap to maintain – you’ll need to consider the cost of training, registration fees and insurance. The average annual cost of owning a racehorse is around £20,000.
6. Which type of horse should I buy? You’ll need to decide whether you want a jump or flat horse, or a dual purpose horse. Both flat and jump racing can provide a good return on investment, with some high worth prize funds.
7. Where should I buy the horse? Look for yearling or bloodstock sales approved by the British Horseracing Authority, such as Tattersalls at Newmarket or the Doncaster Bloodstock Sales in South Yorkshire.
8. Choose a good trainer: Choosing a good racehorse trainer is crucial – look for one with a proven track record of wins. Luke Dace, a successful racehorse trainer, charges around £35 per horse, per day.
Luke currently has space at his West Sussex yard to add to his string of racehorses, so if you’re a prospective owner, or looking for a new trainer, contact him at email@example.com