| People involved in the horse racing industry are a | | | | 3) Selecting luxury property without regard to |
| breed amongst themselves. Their mindsets are like no | | | | considering the special needs or interests of people |
| other and many times their attitude of "shoot, ready, | | | | involved in the industry. |
| aim" makes them susceptible to many serious | | | | Horse racing people love to watch horse racing. It's |
| mistakes when purchasing luxury properties that those | | | | imperative that their luxury property be located in an |
| in other professions seem to avoid. The industry is no | | | | area where they can enjoy all the amenities of that |
| small potatoes. In 2009, the entire handle was over $12 | | | | lifestyle. Is there a race book or casino in Las Vegas |
| billion and a single horse was once sold for $16 million. | | | | that won't have racing all day long? A horse-racing |
| In fact, the richest race held annually has a purse of | | | | industry lover away from the races will not make for a |
| $10 million dollars! Obviously, this industry generates | | | | very happy luxury real estate owner. |
| plenty of money for its participants. It's how the horse | | | | 4) Not considering the tax ramifications, if any, that the |
| jockeys, horse breeders, horse trainers, horse owners | | | | purchase of luxury real estate may entail. |
| and the horse racing fan spend that money is where | | | | If there's one mistake I've seen so many professionals |
| they generally go awry and luxury real estate is | | | | make it's this one - I can't stress enough their need to |
| generally the product of choice. | | | | consult a qualified tax professional regarding the |
| In my over 5 years of working with equestrian | | | | benefits and pitfalls of any luxury real estate purchase. |
| professionals, here are the top 5 mistakes I've seen | | | | A good real estate professional certainly informs their |
| individuals make when purchasing luxury real estate: | | | | client of this. (And you'd be surprised on how many do |
| 1) Thinking every agent understands the mindset of the | | | | not!) |
| horse owner and people in the horse racing industry in | | | | 5) Letting their emotions dictate their actions without |
| general. | | | | thought of consequences. |
| In reality, the horse racing industry is a social group that | | | | Remember in point 2 above I said that the industry |
| has their own culture. If their agent can't speak their | | | | personnel tend to throw caution to the wind? Try doing |
| language, that agent is better well served in another | | | | that in a luxury transaction! Once again, it's extremely |
| industry. | | | | important that they align themselves with a |
| 2) Poor understanding of what market value really is in | | | | professional that understands their mindset or "all bets |
| a extremely volatile luxury market. | | | | are off". Unless their emotions are properly grounded, |
| It's hard to believe, but I've found that horse owners | | | | emotional mistakes in luxury properties can become |
| and the industry in general tends to spend money | | | | quite costly. |
| without regard to even caring about what the true | | | | Purchasing luxury properties for those associated with |
| value of a property actually is. That's their nature - | | | | the multi-billion dollar horse racing industry can be a |
| many times, they throw caution to the wind. They | | | | tricky proposition for anyone. It's not as easy as it may |
| really need a knowledgeable real-estate agent that | | | | seem and many avoidable problems can be solved |
| specializes in luxury property to keep the horse owner, | | | | with the help of a knowledgeable agent who |
| horse jockey, horse trainer, horse breeder, or horse | | | | specializes and speaks their language. However, |
| racing fan targeted to what true market value is and | | | | there's definitely a lack of industry professionals that |
| guide them towards a successful and profitable | | | | understand the special needs and wants of this elite |
| transaction. | | | | group. |