worthwhile to buy isf debenture?

musicien

Heard that it's gone to 5 m! Is it worthwhile?

cecilau

It's too expensive now.

FattyDaddy

You can get your money back when your child finishes school and you sell the debenture, often at a higher price. The only question is whether you can raise the money and can afford to have the money tied up for a few years.

Hedgies

Whether it is worthwhile to buy one at 5mm is a subject call... but looking at the increasing number of HK parents wanting to put their kids into IS / private IB school (plus the large number of new-borns in the year of dragon), I would think the price of debentures in general would rise.. Unfortunately, ISF is the only school debentures which have liquidity in the secondary market, hence parents may not have a lot of choices..

ethanjoyce

Can anyone comment on the choice of General Capital Levy and Capital Note?  General Capatial Levy is only HK$200,000 and is one-off re-fundable after leaving school, so what's the benefits of choosing Capital Note instead which is so expensive?

Hedgies

The benefits of a Capital Note is: (i) you will have 3 interview opportunties (including an early assessment opportunity) vs. 1 interview opportunity for kids not covered by a Capital Note and (ii) if your kid passes the interview, kids covered by Cap Notes have the highest priority of getting in among all the applicants.

ethanjoyce

Thanks. Is it very competitive to get in ISF FY? Any idea on the acceptance ratio?

mugtaitai

Plus you can sell the Capital Note in secondary market and make a profit when the child leaves school (you will have to split the profit with the school though). General Capital Levy is essentially a non interest bearing lending to the school. You get the full amount back when the child leaves school and that's is it.

ethanjoyce

回復 mugtaitai 的帖子

Thank you!

pigpigfamily

Does anyone know where I can buy the Capital Note?  

Shrimpiggy

Hk has many wealthy people!

saikungmom

call the club membership companies, like those who sell Aberdeen Marina Club or American Club memberships.

saikungmom

原帖由 Shrimpiggy 於 13-02-26 發表
Hk has many wealthy people!

Cannot agree more

judymama

jeff76916

Far too expensive beyond the reach of ordinary families.

Shrimpiggy

Do you know how many debentures ISF sold? It is a very good to have 500mio funding from 100 holders...though the original values were only 1-3mio. If there is 200 debentures, there are 1billion capital for investment, the school is the biggest winner regardless the value of debenture when u cash out 13yrs later.
I think the government need to regulate the debenture otherwise there might be another Leman mini bond.......

HKTHK

回復 Shrimpiggy 的帖子

It is of course nice to have 500 mil in funding but the debenture started at like 250k, not 1 mil to 3mil

Shrimpiggy

Yes, but who knows who trade it in the secondary market? Potential parents, the school, the board members of the school and might welcome money laundry ? For HKIS, CDNIS etc, at least I know I buy it directly from the school and all these transaction must be booked as non profit making Organizations required.

pppwong

原帖由 saikungmom 於 13-02-27 發表
call the club membership companies, like those who sell Aberdeen Marina Club or American Club member ...

Sorry I'm new to this game. Do you mind explaining just a bit more? Did you mean that the capital notes cannot be bought from the school directly, and that we have to somehow find it from the secondary market? Thankyou!

Shrimpiggy

I think u still can buy from school, but the queue is so long that no one can answer you....as it is selling at the listed price. But only ISF you can trade in secondary market that if you can offer a REASONABLE price, someone in the marketing might sell it to you.