How much does it cost in ongoing charges to keep a horse per year?
On a worse case basis, for a 5% Share which include FULL OWNERS PRIVILEGES including your NAME IN RACEBOOK and ALL OWNERSHIP TICKETING, we advise our clients to budget $6.86 per day ($48.07 per week), ($208 per month) per 5% share ($2,500 per annum) to have a horse trained with a Leading Trainer at a Sydney or Melbourne Metropolitan Racetrack.
These budgeted costs make no allowance for any prizemoney won.
What does this $6.86 per day ($48.07 per week) per 5% share cover?
Everything: Training Fees, Agistment, Veterinary Costs, Farriers, Transport, Raceday Costs, Strappers, Swimming Pool Fees, Track Fees, Gear Hire, Supplements, Chiropractors, etc.
Exception: The only 2 things not included in the above costs structure.
The first is a situation we hope needs to be encountered: Race nomination & Acceptance fees for Major Group Races. e.g. Golden Slipper, Derby, Cox Plate, Melbourne Cup, etc.
This would be a nice problem to have as only horses whom have performed with distinction on the racetrack can compete in these events and should your horse be eligible for such races, it would have secured significant prizemoney to offset against this minor expenditure.
Insurance: Secondly, whilst insurance was included in the original Share Price to the 1st November of the year we purchased the yearling, after that expiry date it is up to each owner individually, to decide whether or not they wish to re-insure their share. There is no compulsion for any owner to re-insure or not. It is a personal preference that each owner considers for themselves. Dynamic Syndications is not an insurance agent under the Act. We do not provide insurance. Should an owner decide to re-insure their share then they should budget a premium amout of approximately 4% of the insured value. For example, if the share price was $8,000 then the premium for 12 months would be approximately $320.00.
Dynamic Syndications recommends to all owners to re-insure their share. Dynamic Syndications insure each horse from fall of hammer with Logan Livestock Insurance. Dynamic Syndications Managing Director has exclusively used Logan Livestock Insurance since 1986. This association ensures that our clients receive the best service available at competitive rates.
How did Dynamic Syndications budget $6.86 per day - per 5% Share ($48.07 per week) as the figure?
Basic Maths: Nobody can ever give you an exact figure how much your horse will cost over 12 months.
It’s impossible to anticipate based on the fact we do not know in advance: exactly how many days the horse will be in work, in the spelling paddock, sets of shoes, float trips, race starts, etc, etc.
But what we do know is the an average horse Trained in Sydney or Melbourne costs approximately $42,000 per annum.
Because we do not want to see any client in financial hardship relating to ongoing costs, we advise our clients that they should budget a little extra to cover any unforeseen circumstance.
Therefore we suggest that you should budget $50,000 a year for your individual horse.
It becomes simple maths from this point:
$50,000 per year divided by 20 owners = $2,500 per owner
$2,500 per owner divided by 52 weeks = $48.07 per week
$48.07 per owner per week divided by 7 days = $6.86 per day
Is it a payment plan? If not, how do I pay this amount?
No - It is not a payment plan. You will be sent an account for 5% of what was spent on your horse monthly in arrears.
The horse will be in the spelling paddock approximately 5 months a year.
When out spelling, 100% of the horse would cost approximately $1,200 per month. Therefore you would receive an account for 10% of that total monthly amount.
In this example, that would be $60 per month (5% of the account).
When the horse is in the racing stable (which is approximately 7 months a year), the average monthly account is approximately $3,900 per month.
Therefore you would receive an account for 5%. In this example that would be $195 for the month.
This figure can vary between $3,200 - $5,200 depending what your horse did during the month, how many times it saw the vet, had new shoes, race starts etc.
However, a fair averaged account over the total 7 month period in the stable is $195.
So in this example we calculated:
5 months spelling @ $60 per month average = $300
7 months training @ $195 per month average = $1,365
Our Budgeted spend per year = $2,500 divided by 52 weeks = $48.07 per week
Our Actual Total spend per year = $1,665 divided by 52 weeks = $48.07 per week
Total Cash Surplus = $835
Assumption: Our figures have been calculated on your horse winning zero prizemoney and represents a worse case basis.
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