Piggybank News

March 8, 2011

Invest in Horses?

Filed under: Hot tips — nspresources @ 9:55 am
Tags: ,

I just got sent the following article by Ajay Ahuja – one of the bigger players on the property investment scene.  looks like he is spreading his wings ……

“Horse racing is the second most watched sport after football.  The industry is huge and so can be the returns.  Known as the “sport of the kings” top prices can be paid for the right horse.  You can invest in a share of specific horses or a portfolio of horses.  Values can change after one race.  A horse may be valued at £50,000 at the start of the race and if it wins could be worth £1m.  There are generous tax advantages with investing in race horses. You can sell at a profit and pay no tax.  Your investment in a race horse, which can be as low as £3,000, can give you a share of the winnings also which is tax free.  It is one of the few investments that can deliver a cashflow whilst owning the asset.”

Piggy says “Honestly Ajay?  You have to be kidding right?  I’d be the first to admit to an obsession for all things equine but horses are an excellent way of losing money – not making it!”

Now to be fair, Ajay does categorise this as a “high risk” investment.  I’d rather call it an expensive hobby; but if you have £3000 (plus the ongoing share of costs) to spare and racing excites you then I can well beleive that owning a share of your own horse makes things a bit more interesting.  But don’t think of  it as an investment – unless you are talking to your accountant that is!


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