From house to horse: struggling Gen Zers join the racehorse market

A young Victorian man priced out of the “impossible” housing market has found an unlikely alternative investment avenue in the racing industry.

A house out of the question? Well, what about a racehorse?

Victorian engineering student and keen fisherman Jacob Lambert has invested in a racehorse after being priced out of the housing market.

The 22-year-old, who has dabbled in buying gold and investing in the stock market, recently found himself in the predicament of not having enough savings to afford a home but enough to burn a hole in his pocket.

Typically an investment for those with deeper pockets and racing connections, racehorse ownership has become easier and more affordable in recent years.

While perhaps not quite as secure as owning a home, a global micro-syndication market has emerged that offers investors a fraction of a per cent stake in racehorses for as little as $80.

Jacob Lambert has found entering the housing market impossible. Picture: Supplied.

“With the rental market and all of these rate rises, rent has gone absolutely bananas, so that’s basically making [home ownership] impossible,” Mr Lambert said.

“Most of my mates share that buying a house is the big thing we all struggle with.

“Rent rises, cost of living, it’s all pinned against my age group.”

A keen racing fan, Mr Lambert was confident there would be dividends in his micro-racehorse shares.

Mr Lambert has invested in horseracing through micro shares. Picture: Supplied.

“It’s an alternative investment, and it’s a low cost one,” he said.

“I looked up what they can earn and the payout structure, and even on a 0.01 per cent share, the payout can still be quite good if they do well,” he said.

Mr Lambert purchased his stake through BTX Racing, and founder Steve Piek says he’s not the only young investor looking for returns in the racing industry.

“(Traditionally) the cost of owning a racehorse can be anywhere from $5000 to $10,000 for a small share, but we built a Blockchain program that can actually fractionalise ownerships in a horse,” the former accountant said.

“We’ve seen a lot more younger demographic come into the sector than what you’d expect in traditional ownership, primarily on pricepoint.”

Steve Piek, founder of BTX Racing, with Chaillot. Picture: Supplied

Mr Piek said costs, including training and welfare, are bundled into the upfront price.

BTX has become the first of its kind in Australia to incorporate a breeding program into its platform, and its stable hosts horses trained by Gai Waterhouse and Ciaron Maher Racing – last year’s Melbourne Cup winner.

Mr Piek said that while there’s an inherent risk when investing in horse racing, breeding can be a better option.

“The breeding side is a lot more investment grade,” he said.

He said the industry generally reacted well to the new ownership model.

“If we have 1000 more people, new owners, with eyes on each horse, it’s only going to drive interest in the industry.”