Racehorse Ownership Sets Record High

Tue, 16 Jan 2018  |  

This article first appeared on the Dynamic Syndications website at this link: https://www.dynamicsyndications.com/news/Racehorse-Ownership-Sets-Record-High 


Racehorse Ownership Sets Record High

 Fantastic news in the racing industry.

Race horse ownership hit a record high in 2016-17, with Syndications giving an increasing number of people access to a share in a racing thoroughbred.

In 2016-17, there were 79,631 owners of a race horse or a share in a race horse. This is up 0.9 per cent from the number a year earlier and up a healthy 16.8 per cent from the level 5 years earlier in 2011-12.

The nature of horse ownership is changing. The number of registered horses to have 10 or more owners rose to a record high of 1,736 which represented 15.3 per cent of all registered horses. Just think of it, one in seven horses running around Australia’s race tracks is owned by 10 or more people. Back in 2005-06, there were only 659 horses with 10 or more owners, which was just 4.8 per cent of all registered owners.

The power of the syndication process for horse ownership is easy to see.

The boom in syndication is also linked, it would seem, to a realisation that the on-going ownership costs after buying the initial 5 per cent, for example, are not all that prohibitive. As I wrote last year https://www.dynamicsyndications.com/news/CAT--DOG-or-RACEHORSE--Comparing-costs-may-surprise-you- , after you buy your 5 per cent share, owning a race horse trained by either the magnificent Gai Waterhouse, up and coming star Brad Widdup, Brisbane based master horse-man Chris Munce or down in Melbourne with the big-hitter Mick Price, costs not much more than owning a family cat or dog. It’s about $3,000 a year all up to own a share in a horse, a figure that is reduced if there is any prize money.

Reflecting changes in the structure of Australia’s population, the age of horse owners is also increasing.

In 2016-17, just 3.3 per cent of horse owners were under the age of 25 years. A little over a decade ago, the proportion was a little higher at 3.8 per cent.

For those aged between 26 and 50 years, the ownership rate has dropped from 54.7 per cent in 2005-06 to 45.8 per cent in 2016-17.

The age cohort where there has been a sharp rise in ownership rates is for those aged 51 to 75 years, who now account for 47.7 per cent of all horse owners. This is up from 39.1 per cent in 2005-06. Reflecting the aging population, is the fact that 3.2 per cent of those owning a share in a race horse are aged 76 and over, up from just 2.5 per cent of owners in 2005-06.

This increase in the age at which people own race horses looks to be linked to big structural changes in the economy. For one, people are living longer. Another issue is the fact that more young people (under 25) are attending university and as a result are deferring the start of income earning. For these young people, this this makes buying a share in a horse a little more challenging.

For the older generations, they are likely to have ‘spare money’ to do a ‘bucket list’ wish like buying a horse as a result of the wealth boom from owning property and from having had many years of accumulated savings in superannuation.

Despite the range of other issues in the racing industry, the rise in the number and proportion of horses owned by syndicates is a major positive. It increases the number of people with a direct interest in the races and it is likely to have a positive impact on race course attendances.

Source: Racing Australia Fact Book 2016-17

Disclosure: I received no payment for this article. I wrote while watching the cricket over the summer break.

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The misplaced objective of the government of delivering a surplus, come hell or high water, has gone up in smoke

Tue, 07 Jan 2020

This article first appeared on the Yahoo Finance web site at this link: https://au.finance.yahoo.com/news/the-governments-test-in-2020-220310427.html   


The misplaced objective of the government of delivering a surplus, come hell or high water, has gone up in smoke

For many people, the cost of the fires is immeasurable. 

Or irrelevant. 

They have lost loved ones, precious possessions, businesses and dreams and for these people, what lies ahead is bleak.

Life has changed forever.

As the fires continue to ravage through huge tracts of land, destroying yet more houses, more property, incinerating livestock herds, hundreds of millions of wildlife, birds and burning millions of hectares of forests, it is important to think about the plans for what lies ahead.

The rebuilding task will be huge.

Several thousands of houses, commercial buildings and infrastructure will require billions of dollars and thousands of workers to rebuild. Then there are the furniture and fittings for these buildings – carpets, fridges, washing machines, clothes, lounges, dining tables, TVs and the like will be purchased to restock.

Then there are the thousands of cars and other machinery and equipment that will need to be replaced. 

What's ahead for the Australian economy and markets in 2020

Thu, 02 Jan 2020

What's ahead for the Australian economy and markets in 2020

Happy New Year!

2020 will be a year where Australia’s annual GDP will exceed $2 trillion, our population will get very close to 26 million people and we will clock up 29 years with no recession.

It is also a year where the economy will be a dominant issue for policy makers, will drive what happens to interest rates, will help drive investment returns and will feed into the well-being of the Australian community. 

2020 kicks off with relatively good news in terms of economic growth, even though the labour market is likely to remain weak, with wages growth struggling to lift and inflation remaining below the RBA’s 2 to 3 per cent target. The Reserve Bank may have one more interest rate cut in its kit bag, but by year end, the market is likely to price in interest rate increases, albeit modestly.

The ASX, which had a great 2019 is set to be flatten out, in part driven by the change in the interest rate outlook, but it should get a boost from better news on housing and household spending.

In terms of the specifics, I have broken down the 2020 outlook into a range of categories and given a broad explanation on the issues underpinning the themes outlined.

GDP Growth

It’s a positive outlook. A pick-up in GDP growth from the current 1.7 per cent annual rate is unfolding, with the only real issue is the extent of the acceleration.