How much is a Thoroughbred HorseWhat does a thoroughbred horse cost?
The Fusaichi Pegasus is considered the most valuable thoroughbred horse ever made. Originally bought as a youngster for $4 million, this colt was subsequently bought in 2000 and bought by an Irishman for more than $60 million. Keeneland Sales 2007 figures show that more than 9,000 thoroughbred horse breeds with a combined value of more than $814 million were delivered.
What does a thoroughbred horse mean on this basis? These are some of the extra property items that also need to be considered in the ultimate costs of whole blood breeding. Often you can buy fractional stocks of a thoroughbred. Perhaps it's not for you to own a horse.
There are many barns that grow and educate whole blooded animals that allow you to do this if you comply with certain specific economic criteria. At West Point Throroughbreds in Saratoga Springs, NY, a 5% interest in a horse can usually be acquired for around $10,000. When you don't want to pay the $90,000 median to get your whole blood, this is an easier way to get engaged without necessarily interfering in the day to day maintenance of the property.
There'?s commissions that have to be made. When you buy a thoroughbred horse through a realtor or auctions, you may be asked to pay 5-10% of the horse's total retail value. This means that your new thoroughbred now costs an additional $4,500-9,000 on avarage. Sometimes these commissions are included in the horse's end value and can be up to 2-3% according to where you buy the horse.
Ethically, a horse is not part of the US nutrition supply chains. In spite of this fact, the Act still treated the horse as if it were an object or a good. If there is a VAT that is applicable to the sale of goods in most legal systems in the USA and around the globe, then it is applicable to the sale of a thoroughbred horse.
The United States currently has the highest Tennessee incidence of the highest annual mean value -added taxes per country- in the combination of state and value -added taxes, at 9.46 per cent. That means an Tennessee property holder might have to make an additional $9,000 in addition to the purchase cost. In the above case, this would mean that a VAT of 8.9% would be levied on the $99,000 whole blood animal with a 10% provision.
As a rule, the acquisition of a thoroughbred animal is a legal agreement. Unprofessional selling could be done with a handshake, but most people who are paying $90k for a horse want to have a written, official agreement in case something goes bad. It may also include provisions for prospective cover charges, license charges and other running expenses associated with the transaction.
It' a sure thing you have to be adding between $3,000-$5,000 to pay this if you own a thoroughbred horse. When you pay a ton of money to buy a high value thoroughbred horse with a tried-and-tested line, the last thing you want to do is let something happens to the horse before you can recoup some of your capital outlay.
And the way to do that is to take out a death benefit plan. When the horse deaths for a insured cause, you can take advantage of the value of this one. In general, most death benefit insurances consist of approximately 4.5% of the value of the horse purchased or auctioned.
Now, think of the coverage for a horse like Fusaichi Pegasus: Each thoroughbred horse has running expenses, which must be payed. As soon as you have gone through the purchase of a horse and once you have payed all the charges, you still have to pay a month's worth of upkeep. When you buy a thoroughbred to drive on top tier routes during the year, the cost of servicing can be $60,000 or more per year.
And if you don't keep the whole blood in your own barn, then you also have administration and maintenance expenses that could potentially exceed $1,000 a year. When the horse is in the race, some or all of these expenses can be compensated by the money the thoroughbred can make. If not, you will have to pay the price for this hot-blooded race out of your own pockets.
Is there any way to lower these expenses? However, the only true way to lower your expenses is to build your own breed programme. Buying a thoroughbred horse from someone else, even if the horse is only one stallion, will cut your money by at least five places.
Conversely, if you breed thoroughbreds on your own land, you may be able to conserve ten thousand dollar more. However, the price for a winner like the US Pharaoh could one night be close to the US recordholder Tapit, whose price was $300,000.
However, a supplier offering iced specimens for artifical semen collection may pay less than $1,000. Purebred is one of the most costly horse to buy and care for. If all the expenses sum up, even the avarage sale in the first year of possession can slightly surpass 150,000 US dollars.
Running expenses can vary between $10,000 and $60,000 per year, dependent on workout, transport and other nursing needs. It' not a horse race that anyone can own, but if you can, it is one of the best ways to be a friend with a thoroughbred that comes from living.