Top 5 Horse Racing Industry Luxury Real Estate Purchasing Mistakes

People involved in the horse racing industry are a breed amongst themselves. Their mindsets are like no other and many times their attitude of “shoot, ready, aim” makes them susceptible to many serious mistakes when purchasing luxury properties that those in other professions seem to avoid. The industry is no small potatoes. In 2009, the entire handle was over $12 billion and a single horse was once sold for $16 million. In fact, the richest race held annually has a purse of $10 million dollars! Obviously, this industry generates plenty of money for its participants. It’s how the horse jockeys, horse breeders, horse trainers, horse owners and the horse racing fan spend that money is where they generally go awry and luxury real estate is generally the product of choice.

In my over 5 years of working with equestrian professionals, here are the top 5 mistakes I’ve seen individuals make when purchasing luxury real estate:

1) Thinking every agent understands the mindset of the horse owner and people in the horse racing industry in general.

In reality, the horse racing industry is a social group https://regardingluxury.com/ that has their own culture. If their agent can’t speak their language, that agent is better well served in another industry.

2) Poor understanding of what market value really is in a extremely volatile luxury market.

It’s hard to believe, but I’ve found that horse owners and the industry in general tends to spend money without regard to even caring about what the true value of a property actually is. That’s their nature – many times, they throw caution to the wind. They really need a knowledgeable real-estate agent that specializes in luxury property to keep the horse owner, horse jockey, horse trainer, horse breeder, or horse racing fan targeted to what true market value is and guide them towards a successful and profitable transaction.

3) Selecting luxury property without regard to considering the special needs or interests of people involved in the industry.

Horse racing people love to watch horse racing. It’s imperative that their luxury property be located in an area where they can enjoy all the amenities of that lifestyle. Is there a race book or casino in Las Vegas that won’t have racing all day long? A horse-racing industry lover away from the races will not make for a very happy luxury real estate owner.

4) Not considering the tax ramifications, if any, that the purchase of luxury real estate may entail.

If there’s one mistake I’ve seen so many professionals make it’s this one – I can’t stress enough their need to consult a qualified tax professional regarding the benefits and pitfalls of any luxury real estate purchase. A good real estate professional certainly informs their client of this. (And you’d be surprised on how many do not!)

5) Letting their emotions dictate their actions without thought of consequences.

Remember in point 2 above I said that the industry personnel tend to throw caution to the wind? Try doing that in a luxury transaction! Once again, it’s extremely important that they align themselves with a professional that understands their mindset or “all bets are off”. Unless their emotions are properly grounded, emotional mistakes in luxury properties can become quite costly.

Purchasing luxury properties for those associated with the multi-billion dollar horse racing industry can be a tricky proposition for anyone. It’s not as easy as it may seem and many avoidable problems can be solved with the help of a knowledgeable agent who specializes and speaks their language. However, there’s definitely a lack of industry professionals that understand the special needs and wants of this elite group.

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