Money market & mortgagr market

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  1. 1. MONEY MARKET The official currency : Singapore dollar (sign: $;code: SGD) Notes : SGD 2, 5, 10, 50, 100, 500, 1,000, and SGD10,000. Coins : 1, 5, 10, 20 and 50 cents and SGD 1. The US ,Australian dollar, Yen and British pound areaccepted at major shopping centers andrestaurants. Exchanging money in some banks will be plus aservice charge on each exchange transaction atabout S$2 or S$3. Major credit cards are generally accepted AmericanExpress, Diners Card, JCB, MasterCard and Visa
  2. 2. CURRENCY DEPOSIT INSURANCE Wide choice of currencies: Choice of 10 foreign currencies: AUD, CAD, CHF,EUR, GBP, HKD, JPY, NZD, RMB and USD (Foreign Currency Fixed DepositAccount). The following Singapore dollar denominated deposits placed with a DepositInsurance Scheme member are covered: Savings account Fixed deposit account Current account Money in CPF Investment Scheme The following deposits are NOT covered: Foreign currency deposits Structured deposits Investment products such as unit trusts, shares and other securities Up to S$50,000.
  3. 3. EXCHANGE RATE Singapore has the highest trade to GDP ratio in the world at 407.9 percent.(which is the sum of exports and imports divided by the gross domesticproduct.) The Asian Dollars Market has since grown to a total asset size of morethan US$1 trillion. The trend appreciation of Singapore dollar over last decade has helped tolimit imported inflation in Singapore.
  4. 4. Persons per square mile : 18,645 (USA: 84) Dominance of Housing & Development Board (HDB) inhousing Public Sector (HDB) from low income to upper middleincome groups flats 82%. Private sector - 18% Two financing systems in Singapore The HDB public finance. The commercial finance. The majority of the home purchases in Singapore isfinanced through the use of Central Provident Fund (CPF) -The CPF is the Singaporeans social security system,providing pension, medical care as well as other schemes.
  5. 5. KEY INSTITUTIONS IN SINGAPORES HOUSING SYSTEMHOUSING AND CENTRALCOMMERCIALDEVELOPMENTPROVIDENTBANKS, FINANCE BOARD FUNDHOUSESHDB Town Planning Collects employees and Provides market employer contributions interest ratemortgages to buyersBuilds and sells subsidized Members can withdraw funds Make loans to public housing (99 year for approved purposes, private sector leasehold)including housing financedevelopers forconstruction andOffers mortgage loans - up investments to 30 years - 90% LTV - int rate = CPF saving rate + 0.1% = 2.6%
  6. 6. Govt loans, grantPUBLIC HOUSING SECTOR (HDB)HDB Public housing Resale marketDown payment DirectMortgage paymentspurchasePurchase ofgovt bonds CPFContributionsHouse buyers Down paymentMarket rate Mortgage payments mortgages Commercial banks
  7. 7. PRIVATE HOUSING SECTORDevelopers Private housingLoansContributions CPFHouse buyer Down payment Mortgage payment Market ratemortgages Banks
  8. 8. WHO CAN BY PROPERTIES IN SINGAPORE ?SUBSIDIZED NEWHDB direct salesELIGIBLE CITIZENPUBLIC HOUSING HOUSEHOLDSMARKET PRICE HDB secondary marketCITIZENS ANDRESALE PUBLICPERMANENTHOUSING RESIDENTS (PRS) Private housing market HOUSESCITIZENS ONLY APARTMENTS &Private housing marketCITIZENS, PRS,CONDOMINIUMSFOREIGNERS
  9. 9. PRICES Average August 2010PUBLIC HOUSINGPRIVATE HOUSING HDB flat condominium3 Rooms 4 Rooms 5 RoomsExecutive (700 sq ft) (970 sq ft) (1,200 sq ft)(1,400 sq ft)> 2,000 sq ft213,860 (USD) 276,550 (USD) 329,755 (USD)407,070 (USD)More than 750,000(USD)