Horse racing is a rich man’s sport. But this doesn’t mean the average horse lover cannot own a horse. There are many ways to own a horse. Some people buy horses purely out of the passion for the game but some people buy horses as an investment. However unlike other investments, buying horses doesn’t give a sure return. However here are few ways that you can invest in a horse and pros and cons of each method.
Buying a horse completely
Without getting involved in racehorse syndicates you can buy a horse completely. Now this is a very expensive thing. A good race horse may cost you a fortune and even multimillionaires avoid doing this because of the other costs involved. Owning a race horse means you need to train them, take care of them and take them to the vet and various other things. And these other activities itself cost a fortune. If you a buying a horse purely for leisure and as a pet it could be okay, but if you put all your savings and buy a horse for make money off it, the costs and expenses are quite high compared to the unsure return they would make. This way of investing in a horse is high risk and high cost method. However if you don’t like sharing and you have plenty of retaining cash this method could work for you.
Sharing the ownership
This is when you get involved in racehorse syndicates Melbourne at http://ken-kingthoroughbreds.com.au/. The ownership of the horse may be with a one person or partners, and you buy a share of the horse. This is similar to buying shares of a company. Now there is a main director board who has higher shares and involved in decision making and then there are other shareholders. You can invest in a racehorse the similar way. But these are few things to keep in mind when buying shares of a horse. The returns are depending on the winnings of the horse and it is not certain. So sometimes you may get a good return but sometimes you may not. But the difference with owning a whole one compared to this is that you invest a little amount. So even if you don’t win you are not at a complete loss.
This is when a group of people share the costs and expenses of owning a horse. This is simply like running a limited liability company. The owners are responsible of taking care of the horse. You have the horse racing shares which includes the cost of training, vet and other expenses and the winnings are also equally shared among the owners.