Will rising interest rates put the brakes on Australia's property mark?

 

The latest interest rate hike and the risk of another rise in the coming months could slow Australia’s property market rebound, but won’t be enough to halt further price rises, experts say. Tuesday's decision to increase the cash rate to 4.35% comes as a fresh blow to homeowners who have already seen their mortgage repayments skyrocket over the past 18 months. The November rate rise had been widely expected after higher-than-expected inflation in the September quarter gave the RBA little choice other than to increase interest rates in order to get inflation back to its 2-3% target band within a reasonable timeframe.Recent comments from RBA governor Michele Bullock had signalled the bank has a low tolerance for allowing high inflation to linger and risk becoming entrenched.But even though the latest interest rate rise will further reduce home buyers’ borrowing capacities, economists say the impact will be offset by more powerful factors driving the home price surge across the capitals.PropTrack senior economist Eleanor Creagh said record levels of net overseas migration, limited housing stock and a supply pipeline further restricted by the construction slowdown had offset the impacts of interest rate rises, helping push up prices."This additional increase in interest rates may slow the current pace of home price growth but is unlikely to deter these gains, with strong population growth, tight rental markets and a housing shortfall fuelling further price rises."The latest PropTrack Home Price Index shows home prices are up 4.93% already this year.Prices are tipped to rise a further 5% next year, according to NAB, even though the bank has predicted a further rate hike in February."We expect the board to form the view that a single 25 basis point adjustment to rates is not enough to mitigate the risks on inflation," said NAB chief economist Alan Oster.There were signs that price growth was slowing, Mr Oster said, including an increase in listing and auction volumes that could soak up demand, meaning prices wouldn’t rise in 2024 as rapidly as this year."We’re already seeing softness, therefore we’re not expecting the current surge to continue," he said.AMP Capital chief economist Shane Oliver said the latest interest rate rise would reduce borrowing capacities by about 2%, and the risk of another hike would keep buyer demand subdued, further slowing price growth."This will accentuate that slowing in price growth that we have seen and runs the risk that prices will turn negative again," he said."We’ve seen auction clearance rates slowing down, which suggests that still high interest rates have started to get the upper hand again over the huge supply shortfall we have on the back of booming immigration," he said."Historically when [clearance rates] fall below 60%, it's associated with falling prices. The latest interest rate hike and the risk of another rise in the coming months could slow Australia’s property market rebound, but won’t be enough to halt further price rises, experts say. Tuesday's decision to increase the cash rate to 4.35% comes as a fresh blow to homeowners who have already seen their mortgage repayments skyrocket over the past 18 months. The November rate rise had been widely expected after higher-than-expected inflation in the September quarter gave the RBA little choice other than to increase interest rates in order to get inflation back to its 2-3% target band within a reasonable timeframe.Recent comments from RBA governor Michele Bullock had signalled the bank has a low tolerance for allowing high inflation to linger and risk becoming entrenched.But even though the latest interest rate rise will further reduce home buyers’ borrowing capacities, economists say the impact will be offset by more powerful factors driving the home price surge across the capitals.PropTrack senior economist Eleanor Creagh said record levels of net overseas migration, limited housing stock and a supply pipeline further restricted by the construction slowdown had offset the impacts of interest rate rises, helping push up prices."This additional increase in interest rates may slow the current pace of home price growth but is unlikely to deter these gains, with strong population growth, tight rental markets and a housing shortfall fuelling further price rises."The latest PropTrack Home Price Index shows home prices are up 4.93% already this year.Prices are tipped to rise a further 5% next year, according to NAB, even though the bank has predicted a further rate hike in February."We expect the board to form the view that a single 25 basis point adjustment to rates is not enough to mitigate the risks on inflation," said NAB chief economist Alan Oster.There were signs that price growth was slowing, Mr Oster said, including an increase in listing and auction volumes that could soak up demand, meaning prices wouldn’t rise in 2024 as rapidly as this year."We’re already seeing softness, therefore we’re not expecting the current surge to continue," he said.AMP Capital chief economist Shane Oliver said the latest interest rate rise would reduce borrowing capacities by about 2%, and the risk of another hike would keep buyer demand subdued, further slowing price growth."This will accentuate that slowing in price growth that we have seen and runs the risk that prices will turn negative again," he said."We’ve seen auction clearance rates slowing down, which suggests that still high interest rates have started to get the upper hand again over the huge supply shortfall we have on the back of booming immigration," he said."Historically when [clearance rates] fall below 60%, it's associated with falling prices.The latest interest rate hike and the risk of another rise in the coming months could slow Australia’s property market rebound, but won’t be enough to halt further price rises, experts say. Tuesday's decision to increase the cash rate to 4.35% comes as a fresh blow to homeowners who have already seen their mortgage repayments skyrocket over the past 18 months. The November rate rise had been widely expected after higher-than-expected inflation in the September quarter gave the RBA little choice other than to increase interest rates in order to get inflation back to its 2-3% target band within a reasonable timeframe.Recent comments from RBA governor Michele Bullock had signalled the bank has a low tolerance for allowing high inflation to linger and risk becoming entrenched.But even though the latest interest rate rise will further reduce home buyers’ borrowing capacities, economists say the impact will be offset by more powerful factors driving the home price surge across the capitals.PropTrack senior economist Eleanor Creagh said record levels of net overseas migration, limited housing stock and a supply pipeline further restricted by the construction slowdown had offset the impacts of interest rate rises, helping push up prices."This additional increase in interest rates may slow the current pace of home price growth but is unlikely to deter these gains, with strong population growth, tight rental markets and a housing shortfall fuelling further price rises."The latest PropTrack Home Price Index shows home prices are up 4.93% already this year.Prices are tipped to rise a further 5% next year, according to NAB, even though the bank has predicted a further rate hike in February."We expect the board to form the view that a single 25 basis point adjustment to rates is not enough to mitigate the risks on inflation," said NAB chief economist Alan Oster.There were signs that price growth was slowing, Mr Oster said, including an increase in listing and auction volumes that could soak up demand, meaning prices wouldn’t rise in 2024 as rapidly as this year."We’re already seeing softness, therefore we’re not expecting the current surge to continue," he said.AMP Capital chief economist Shane Oliver said the latest interest rate rise would reduce borrowing capacities by about 2%, and the risk of another hike would keep buyer demand subdued, further slowing price growth."This will accentuate that slowing in price growth that we have seen and runs the risk that prices will turn negative again," he said."We’ve seen auction clearance rates slowing down, which suggests that still high interest rates have started to get the upper hand again over the huge supply shortfall we have on the back of booming immigration," he said."Historically when [clearance rates] fall below 60%, it's associated with falling prices.The latest interest rate hike and the risk of another rise in the coming months could slow Australia’s property market rebound, but won’t be enough to halt further price rises, experts say. Tuesday's decision to increase the cash rate to 4.35% comes as a fresh blow to homeowners who have already seen their mortgage repayments skyrocket over the past 18 months. The November rate rise had been widely expected after higher-than-expected inflation in the September quarter gave the RBA little choice other than to increase interest rates in order to get inflation back to its 2-3% target band within a reasonable timeframe.Recent comments from RBA governor Michele Bullock had signalled the bank has a low tolerance for allowing high inflation to linger and risk becoming entrenched.But even though the latest interest rate rise will further reduce home buyers’ borrowing capacities, economists say the impact will be offset by more powerful factors driving the home price surge across the capitals.PropTrack senior economist Eleanor Creagh said record levels of net overseas migration, limited housing stock and a supply pipeline further restricted by the construction slowdown had offset the impacts of interest rate rises, helping push up prices."This additional increase in interest rates may slow the current pace of home price growth but is unlikely to deter these gains, with strong population growth, tight rental markets and a housing shortfall fuelling further price rises."The latest PropTrack Home Price Index shows home prices are up 4.93% already this year.Prices are tipped to rise a further 5% next year, according to NAB, even though the bank has predicted a further rate hike in February."We expect the board to form the view that a single 25 basis point adjustment to rates is not enough to mitigate the risks on inflation," said NAB chief economist Alan Oster.There were signs that price growth was slowing, Mr Oster said, including an increase in listing and auction volumes that could soak up demand, meaning prices wouldn’t rise in 2024 as rapidly as this year."We’re already seeing softness, therefore we’re not expecting the current surge to continue," he said.AMP Capital chief economist Shane Oliver said the latest interest rate rise would reduce borrowing capacities by about 2%, and the risk of another hike would keep buyer demand subdued, further slowing price growth."This will accentuate that slowing in price growth that we have seen and runs the risk that prices will turn negative again," he said."We’ve seen auction clearance rates slowing down, which suggests that still high interest rates have started to get the upper hand again over the huge supply shortfall we have on the back of booming immigration," he said."Historically when [clearance rates] fall below 60%, it's associated with falling prices.The latest interest rate hike and the risk of another rise in the coming months could slow Australia’s property market rebound, but won’t be enough to halt further price rises, experts say. Tuesday's decision to increase the cash rate to 4.35% comes as a fresh blow to homeowners who have already seen their mortgage repayments skyrocket over the past 18 months. The November rate rise had been widely expected after higher-than-expected inflation in the September quarter gave the RBA little choice other than to increase interest rates in order to get inflation back to its 2-3% target band within a reasonable timeframe.Recent comments from RBA governor Michele Bullock had signalled the bank has a low tolerance for allowing high inflation to linger and risk becoming entrenched.But even though the latest interest rate rise will further reduce home buyers’ borrowing capacities, economists say the impact will be offset by more powerful factors driving the home price surge across the capitals.PropTrack senior economist Eleanor Creagh said record levels of net overseas migration, limited housing stock and a supply pipeline further restricted by the construction slowdown had offset the impacts of interest rate rises, helping push up prices."This additional increase in interest rates may slow the current pace of home price growth but is unlikely to deter these gains, with strong population growth, tight rental markets and a housing shortfall fuelling further price rises."The latest PropTrack Home Price Index shows home prices are up 4.93% already this year.Prices are tipped to rise a further 5% next year, according to NAB, even though the bank has predicted a further rate hike in February."We expect the board to form the view that a single 25 basis point adjustment to rates is not enough to mitigate the risks on inflation," said NAB chief economist Alan Oster.There were signs that price growth was slowing, Mr Oster said, including an increase in listing and auction volumes that could soak up demand, meaning prices wouldn’t rise in 2024 as rapidly as this year."We’re already seeing softness, therefore we’re not expecting the current surge to continue," he said.AMP Capital chief economist Shane Oliver said the latest interest rate rise would reduce borrowing capacities by about 2%, and the risk of another hike would keep buyer demand subdued, further slowing price growth."This will accentuate that slowing in price growth that we have seen and runs the risk that prices will turn negative again," he said."We’ve seen auction clearance rates slowing down, which suggests that still high interest rates have started to get the upper hand again over the huge supply shortfall we have on the back of booming immigration," he said."Historically when [clearance rates] fall below 60%, it's associated with falling prices.The latest interest rate hike and the risk of another rise in the coming months could slow Australia’s property market rebound, but won’t be enough to halt further price rises, experts say. Tuesday's decision to increase the cash rate to 4.35% comes as a fresh blow to homeowners who have already seen their mortgage repayments skyrocket over the past 18 months. The November rate rise had been widely expected after higher-than-expected inflation in the September quarter gave the RBA little choice other than to increase interest rates in order to get inflation back to its 2-3% target band within a reasonable timeframe.Recent comments from RBA governor Michele Bullock had signalled the bank has a low tolerance for allowing high inflation to linger and risk becoming entrenched.But even though the latest interest rate rise will further reduce home buyers’ borrowing capacities, economists say the impact will be offset by more powerful factors driving the home price surge across the capitals.PropTrack senior economist Eleanor Creagh said record levels of net overseas migration, limited housing stock and a supply pipeline further restricted by the construction slowdown had offset the impacts of interest rate rises, helping push up prices."This additional increase in interest rates may slow the current pace of home price growth but is unlikely to deter these gains, with strong population growth, tight rental markets and a housing shortfall fuelling further price rises."The latest PropTrack Home Price Index shows home prices are up 4.93% already this year.Prices are tipped to rise a further 5% next year, according to NAB, even though the bank has predicted a further rate hike in February."We expect the board to form the view that a single 25 basis point adjustment to rates is not enough to mitigate the risks on inflation," said NAB chief economist Alan Oster.There were signs that price growth was slowing, Mr Oster said, including an increase in listing and auction volumes that could soak up demand, meaning prices wouldn’t rise in 2024 as rapidly as this year."We’re already seeing softness, therefore we’re not expecting the current surge to continue," he said.AMP Capital chief economist Shane Oliver said the latest interest rate rise would reduce borrowing capacities by about 2%, and the risk of another hike would keep buyer demand subdued, further slowing price growth."This will accentuate that slowing in price growth that we have seen and runs the risk that prices will turn negative again," he said."We’ve seen auction clearance rates slowing down, which suggests that still high interest rates have started to get the upper hand again over the huge supply shortfall we have on the back of booming immigration," he said."Historically when [clearance rates] fall below 60%, it's associated with falling prices.The latest interest rate hike and the risk of another rise in the coming months could slow Australia’s property market rebound, but won’t be enough to halt further price rises, experts say. Tuesday's decision to increase the cash rate to 4.35% comes as a fresh blow to homeowners who have already seen their mortgage repayments skyrocket over the past 18 months. The November rate rise had been widely expected after higher-than-expected inflation in the September quarter gave the RBA little choice other than to increase interest rates in order to get inflation back to its 2-3% target band within a reasonable timeframe.Recent comments from RBA governor Michele Bullock had signalled the bank has a low tolerance for allowing high inflation to linger and risk becoming entrenched.But even though the latest interest rate rise will further reduce home buyers’ borrowing capacities, economists say the impact will be offset by more powerful factors driving the home price surge across the capitals.PropTrack senior economist Eleanor Creagh said record levels of net overseas migration, limited housing stock and a supply pipeline further restricted by the construction slowdown had offset the impacts of interest rate rises, helping push up prices."This additional increase in interest rates may slow the current pace of home price growth but is unlikely to deter these gains, with strong population growth, tight rental markets and a housing shortfall fuelling further price rises."The latest PropTrack Home Price Index shows home prices are up 4.93% already this year.Prices are tipped to rise a further 5% next year, according to NAB, even though the bank has predicted a further rate hike in February."We expect the board to form the view that a single 25 basis point adjustment to rates is not enough to mitigate the risks on inflation," said NAB chief economist Alan Oster.There were signs that price growth was slowing, Mr Oster said, including an increase in listing and auction volumes that could soak up demand, meaning prices wouldn’t rise in 2024 as rapidly as this year."We’re already seeing softness, therefore we’re not expecting the current surge to continue," he said.AMP Capital chief economist Shane Oliver said the latest interest rate rise would reduce borrowing capacities by about 2%, and the risk of another hike would keep buyer demand subdued, further slowing price growth."This will accentuate that slowing in price growth that we have seen and runs the risk that prices will turn negative again," he said."We’ve seen auction clearance rates slowing down, which suggests that still high interest rates have started to get the upper hand again over the huge supply shortfall we have on the back of booming immigration," he said."Historically when [clearance rates] fall below 60%, it's associated with falling prices.The latest interest rate hike and the risk of another rise in the coming months could slow Australia’s property market rebound, but won’t be enough to halt further price rises, experts say. Tuesday's decision to increase the cash rate to 4.35% comes as a fresh blow to homeowners who have already seen their mortgage repayments skyrocket over the past 18 months. The November rate rise had been widely expected after higher-than-expected inflation in the September quarter gave the RBA little choice other than to increase interest rates in order to get inflation back to its 2-3% target band within a reasonable timeframe.Recent comments from RBA governor Michele Bullock had signalled the bank has a low tolerance for allowing high inflation to linger and risk becoming entrenched.But even though the latest interest rate rise will further reduce home buyers’ borrowing capacities, economists say the impact will be offset by more powerful factors driving the home price surge across the capitals.PropTrack senior economist Eleanor Creagh said record levels of net overseas migration, limited housing stock and a supply pipeline further restricted by the construction slowdown had offset the impacts of interest rate rises, helping push up prices."This additional increase in interest rates may slow the current pace of home price growth but is unlikely to deter these gains, with strong population growth, tight rental markets and a housing shortfall fuelling further price rises."The latest PropTrack Home Price Index shows home prices are up 4.93% already this year.Prices are tipped to rise a further 5% next year, according to NAB, even though the bank has predicted a further rate hike in February."We expect the board to form the view that a single 25 basis point adjustment to rates is not enough to mitigate the risks on inflation," said NAB chief economist Alan Oster.There were signs that price growth was slowing, Mr Oster said, including an increase in listing and auction volumes that could soak up demand, meaning prices wouldn’t rise in 2024 as rapidly as this year."We’re already seeing softness, therefore we’re not expecting the current surge to continue," he said.AMP Capital chief economist Shane Oliver said the latest interest rate rise would reduce borrowing capacities by about 2%, and the risk of another hike would keep buyer demand subdued, further slowing price growth."This will accentuate that slowing in price growth that we have seen and runs the risk that prices will turn negative again," he said."We’ve seen auction clearance rates slowing down, which suggests that still high interest rates have started to get the upper hand again over the huge supply shortfall we have on the back of booming immigration," he said."Historically when [clearance rates] fall below 60%, it's associated with falling prices.The latest interest rate hike and the risk of another rise in the coming months could slow Australia’s property market rebound, but won’t be enough to halt further price rises, experts say. Tuesday's decision to increase the cash rate to 4.35% comes as a fresh blow to homeowners who have already seen their mortgage repayments skyrocket over the past 18 months. The November rate rise had been widely expected after higher-than-expected inflation in the September quarter gave the RBA little choice other than to increase interest rates in order to get inflation back to its 2-3% target band within a reasonable timeframe.Recent comments from RBA governor Michele Bullock had signalled the bank has a low tolerance for allowing high inflation to linger and risk becoming entrenched.But even though the latest interest rate rise will further reduce home buyers’ borrowing capacities, economists say the impact will be offset by more powerful factors driving the home price surge across the capitals.PropTrack senior economist Eleanor Creagh said record levels of net overseas migration, limited housing stock and a supply pipeline further restricted by the construction slowdown had offset the impacts of interest rate rises, helping push up prices."This additional increase in interest rates may slow the current pace of home price growth but is unlikely to deter these gains, with strong population growth, tight rental markets and a housing shortfall fuelling further price rises."The latest PropTrack Home Price Index shows home prices are up 4.93% already this year.Prices are tipped to rise a further 5% next year, according to NAB, even though the bank has predicted a further rate hike in February."We expect the board to form the view that a single 25 basis point adjustment to rates is not enough to mitigate the risks on inflation," said NAB chief economist Alan Oster.There were signs that price growth was slowing, Mr Oster said, including an increase in listing and auction volumes that could soak up demand, meaning prices wouldn’t rise in 2024 as rapidly as this year."We’re already seeing softness, therefore we’re not expecting the current surge to continue," he said.AMP Capital chief economist Shane Oliver said the latest interest rate rise would reduce borrowing capacities by about 2%, and the risk of another hike would keep buyer demand subdued, further slowing price growth."This will accentuate that slowing in price growth that we have seen and runs the risk that prices will turn negative again," he said."We’ve seen auction clearance rates slowing down, which suggests that still high interest rates have started to get the upper hand again over the huge supply shortfall we have on the back of booming immigration," he said."Historically when [clearance rates] fall below 60%, it's associated with falling prices.The latest interest rate hike and the risk of another rise in the coming months could slow Australia’s property market rebound, but won’t be enough to halt further price rises, experts say. Tuesday's decision to increase the cash rate to 4.35% comes as a fresh blow to homeowners who have already seen their mortgage repayments skyrocket over the past 18 months. The November rate rise had been widely expected after higher-than-expected inflation in the September quarter gave the RBA little choice other than to increase interest rates in order to get inflation back to its 2-3% target band within a reasonable timeframe.Recent comments from RBA governor Michele Bullock had signalled the bank has a low tolerance for allowing high inflation to linger and risk becoming entrenched.But even though the latest interest rate rise will further reduce home buyers’ borrowing capacities, economists say the impact will be offset by more powerful factors driving the home price surge across the capitals.PropTrack senior economist Eleanor Creagh said record levels of net overseas migration, limited housing stock and a supply pipeline further restricted by the construction slowdown had offset the impacts of interest rate rises, helping push up prices."This additional increase in interest rates may slow the current pace of home price growth but is unlikely to deter these gains, with strong population growth, tight rental markets and a housing shortfall fuelling further price rises."The latest PropTrack Home Price Index shows home prices are up 4.93% already this year.Prices are tipped to rise a further 5% next year, according to NAB, even though the bank has predicted a further rate hike in February."We expect the board to form the view that a single 25 basis point adjustment to rates is not enough to mitigate the risks on inflation," said NAB chief economist Alan Oster.There were signs that price growth was slowing, Mr Oster said, including an increase in listing and auction volumes that could soak up demand, meaning prices wouldn’t rise in 2024 as rapidly as this year."We’re already seeing softness, therefore we’re not expecting the current surge to continue," he said.AMP Capital chief economist Shane Oliver said the latest interest rate rise would reduce borrowing capacities by about 2%, and the risk of another hike would keep buyer demand subdued, further slowing price growth."This will accentuate that slowing in price growth that we have seen and runs the risk that prices will turn negative again," he said."We’ve seen auction clearance rates slowing down, which suggests that still high interest rates have started to get the upper hand again over the huge supply shortfall we have on the back of booming immigration," he said."Historically when [clearance rates] fall below 60%, it's associated with falling prices.The latest interest rate hike and the risk of another rise in the coming months could slow Australia’s property market rebound, but won’t be enough to halt further price rises, experts say. Tuesday's decision to increase the cash rate to 4.35% comes as a fresh blow to homeowners who have already seen their mortgage repayments skyrocket over the past 18 months. The November rate rise had been widely expected after higher-than-expected inflation in the September quarter gave the RBA little choice other than to increase interest rates in order to get inflation back to its 2-3% target band within a reasonable timeframe.Recent comments from RBA governor Michele Bullock had signalled the bank has a low tolerance for allowing high inflation to linger and risk becoming entrenched.But even though the latest interest rate rise will further reduce home buyers’ borrowing capacities, economists say the impact will be offset by more powerful factors driving the home price surge across the capitals.PropTrack senior economist Eleanor Creagh said record levels of net overseas migration, limited housing stock and a supply pipeline further restricted by the construction slowdown had offset the impacts of interest rate rises, helping push up prices."This additional increase in interest rates may slow the current pace of home price growth but is unlikely to deter these gains, with strong population growth, tight rental markets and a housing shortfall fuelling further price rises."The latest PropTrack Home Price Index shows home prices are up 4.93% already this year.Prices are tipped to rise a further 5% next year, according to NAB, even though the bank has predicted a further rate hike in February."We expect the board to form the view that a single 25 basis point adjustment to rates is not enough to mitigate the risks on inflation," said NAB chief economist Alan Oster.There were signs that price growth was slowing, Mr Oster said, including an increase in listing and auction volumes that could soak up demand, meaning prices wouldn’t rise in 2024 as rapidly as this year."We’re already seeing softness, therefore we’re not expecting the current surge to continue," he said.AMP Capital chief economist Shane Oliver said the latest interest rate rise would reduce borrowing capacities by about 2%, and the risk of another hike would keep buyer demand subdued, further slowing price growth."This will accentuate that slowing in price growth that we have seen and runs the risk that prices will turn negative again," he said."We’ve seen auction clearance rates slowing down, which suggests that still high interest rates have started to get the upper hand again over the huge supply shortfall we have on the back of booming immigration," he said."Historically when [clearance rates] fall below 60%, it's associated with falling prices.The latest interest rate hike and the risk of another rise in the coming months could slow Australia’s property market rebound, but won’t be enough to halt further price rises, experts say. Tuesday's decision to increase the cash rate to 4.35% comes as a fresh blow to homeowners who have already seen their mortgage repayments skyrocket over the past 18 months. The November rate rise had been widely expected after higher-than-expected inflation in the September quarter gave the RBA little choice other than to increase interest rates in order to get inflation back to its 2-3% target band within a reasonable timeframe.Recent comments from RBA governor Michele Bullock had signalled the bank has a low tolerance for allowing high inflation to linger and risk becoming entrenched.But even though the latest interest rate rise will further reduce home buyers’ borrowing capacities, economists say the impact will be offset by more powerful factors driving the home price surge across the capitals.PropTrack senior economist Eleanor Creagh said record levels of net overseas migration, limited housing stock and a supply pipeline further restricted by the construction slowdown had offset the impacts of interest rate rises, helping push up prices."This additional increase in interest rates may slow the current pace of home price growth but is unlikely to deter these gains, with strong population growth, tight rental markets and a housing shortfall fuelling further price rises."The latest PropTrack Home Price Index shows home prices are up 4.93% already this year.Prices are tipped to rise a further 5% next year, according to NAB, even though the bank has predicted a further rate hike in February."We expect the board to form the view that a single 25 basis point adjustment to rates is not enough to mitigate the risks on inflation," said NAB chief economist Alan Oster.There were signs that price growth was slowing, Mr Oster said, including an increase in listing and auction volumes that could soak up demand, meaning prices wouldn’t rise in 2024 as rapidly as this year."We’re already seeing softness, therefore we’re not expecting the current surge to continue," he said.AMP Capital chief economist Shane Oliver said the latest interest rate rise would reduce borrowing capacities by about 2%, and the risk of another hike would keep buyer demand subdued, further slowing price growth."This will accentuate that slowing in price growth that we have seen and runs the risk that prices will turn negative again," he said."We’ve seen auction clearance rates slowing down, which suggests that still high interest rates have started to get the upper hand again over the huge supply shortfall we have on the back of booming immigration," he said."Historically when [clearance rates] fall below 60%, it's associated with falling prices.

 

 

 

How do I Choose the Right Trading Platform?

 

Trading platforms are, very simply put, a digital hub that allows you to to buy and trade investments in real-time, 24 hours a day. If only choosing a trading platform were that simple though…right?! Because the truth is, it isn’t easy. There are hundreds of trading options available, some with tax benefits, some with pensions and some without. It’s a jungle to navigate and can stop many people from taking the plunge. 

Which is why establishing the key differences between these types of trading platforms, followed by figuring out what you want, is going to be key to picking the right trading platform for you. 

At the end of the day, choosing your trading platform is a very personal and important decision that heavily depends on your own priorities. It will be unique to you, so don’t be afraid to do your research and homework, because with the right knowledge, you’ll feel confident to back your decision. 

So where do you start? We’re here to break down the different options available to you and how to weigh up which trading platform is for you.

How do I decide which trading platform is right for me?

It sounds obvious, but a simple Google search is a good place to start when looking for the various platforms out there. But be warned, it will produce hundreds of results, with endless facts, figures and reviews. You probably know that already, and that’s probably why you’ve landed yourself here. 

So when being faced with an endless amount of options, how do you pick which name might be the one for you?

When you’re thinking about choosing a trading platform you need to consider your personal situation in relation to these five points: 

‍

1. Range

Each trading platform will have a different range of investments available. Some will have only stocks, others only ETFs, whilst some will have thousands of funds, ETFs and stocks from multiple countries. You need to consider what you want from your investing, and don’t be afraid to say a restricted choice might actually help with the vast quantity of overwhelm in your investing journey.

2. Costs and fees

Trading platforms will vary greatly in the amount they charge. But here’s for some bad news – there is no such thing as a free platform. That being said, the fees that are charged are (hopefully) going towards improving features that the platform has, like the range of investments, the user experience and the ongoing regulation needed to have a platform that is safe and secure. 

It’s important to note, however, that everyone has a different budget and will be investing different amounts. This means that you need to assess your own budget in relation to the platforms to work out what is an acceptable level and what you can afford to pay. 

Let's take a quick look at the costs or fees that you might be coming up against:

- Annual/platform fees: Most platforms will charge an ‘annual’ or ‘platform’ fee often charged monthly to cover the cost of running the platform and managing your investments. These fees can be fixed or a percentage of the value of your holding, and more often than not they’re taken monthly.

- Dealing/trading fees: When you buy or sell investments you may have to pay a fee. Some platforms offer a certain number of free trades a month, others don’t charge at all.

- Subscription fees: Some platforms offer monthly subscriptions in lieu of platform or trading fees.

- FX fees: If buying or selling investments outside your local market, you will have to pay a foreign exchange fee.

- Other fees: Some (but not all) platforms charge withdrawal fees for when you want to cash out, inactivity fees if you don’t make a certain number of transactions a month and management fees if you hold funds rather than shares in your portfolio.

‍

3. Minimum deposit

On the back of this conversation about charges and whilst you’ve got budget in mind, many platforms will have a required minimum contribution. This can be as little as $1 and can be all the way up to $1,000 (or even more). 

Only you will know how much you’re planning to invest and how much is appropriate for your budget. So make sure your platform is going to match up with your financial plan. 

‍

4. Usability

Let’s be honest, there is nothing worse than finishing a long day at work, only to commence battle number two of the day: navigating your way through a jungle to get to your investments. For some who spend all day in tech, usability might not be such a worry. But we all have our own preferences, skills and experience, so make sure that your trading platform is easy and fun to use. Don’t make it a battle. 

Key things to look out for when considering usability are the app and or desktop abilities, investor support, dashboard view, investment filter features and any additional research tools that they offer. 

‍

5. Inclusivity and ethics

Last but not least, the way that the platform is run may well need to be factored into your journey. Because if you want to be investing sustainably, but the range of investments only has two or three named sustainable funds, this isn’t going to be the dream match. Dig around and do some research. 

What’s the percentage of women in leadership positions? How many women make up the wider team? Do they have any dedicated areas to sustainability? What is their social impact? If you’re religious, do they have investments that align with your faith? It’s important to marry your investments up with your values – the same goes for the trading platform you choose.

 

5 tips for choosing the right trading flatform

 

So you're a newcomer. Ready to start trading, but with little to no experience, which begs the question, where do I start? And can leave you feeling overwhelmed.

Well, you're not alone. Everyone has to start somewhere, and it isn't only new investors that feel apprehensive about making a wrong investment decision. After all, your aim is to build wealth. It's a given that with investment comes risk, but if you read ahead, we ensure that you'll learn how to choose a promising trading platform that will soon put you on the right foot.

 

Start Your Learning. What is a Trading Platform?

A trading platform is a software system mainly delivered through a brokerage or financial institution. It allows you, the investor, to autonomously trade financial instruments (such as bonds, shares and other securities) online. 

Sound daunting? It doesn't have to be. To help you make the best decision, we've broken down the non-negotiables when choosing an online trading platform.

 

Trading Platform Non-Negotiables

If you've started doing your research, you'd be well aware of the many online trading platforms available. There are two general ways in which you can begin the investment process. Firstly, if you want step-by-step guidance, you’ll need to hire a professional stockbroker to advise you on which investments to choose. Secondly, if you're here and reading this article, you probably feel comfortable managing the process yourself. Hence, a low-cost, easy-to-use platform is the way to go.

 

Tip 1: Identify Your Needs

Before you dip your toe into the myriad of platforms, take a minute to narrow down what you need from your desired platform. Every investor's decision will differ depending on their goals and where they are in the process. A beginner will likely look toward educational resources, customer support, and perhaps a platform that offers training trades.

 

Tip 2: Look for a User-Friendly Interface

Your choice of platform should be easy to use and beginner-friendly. Education materials, such as video tutorials, to get you started are a bonus. 

You also want an intuitive and well-positioned platform with the most critical analysis tools in front of you, allowing you to close or quickly modify open positions. 

Similarly, you want the speed at which the platform operates to be timely, avoiding network data problems that could potentially affect the execution of your trading.

 

Tip 3: Easy-To-Use Tools

There are different ways to utilise trading software, and the tools offered by the platform you select should work to help a beginner trader. 

Trading signals are one such tool. They work to give signals on current trades and trends, with the idea being to help you identify a profitable trading opportunity. Pre-filled profiles can help customise the signals sent to your account.

Trade analysers are another tool that helps traders by analysing current trends. The tool considers recent trades whilst examining the history of specific assets, which enables it to make predictions that can help you decide which equities or assets to trade.

Automated bots are another tool to consider, whereby artificial intelligence creates bots that learn habits from leading traders. With the ability to closely monitor trades made by industry leaders, they can automatically apply to your account for the same trade position.

 

Tip 4: Security and Stability

For trading to be successful, having a reliable and secure platform is extremely important. Check that your broker has its licence with ASIC, the required regulatory authority within Australia. If so, you're good to go––regulated brokers offer trusted, safe and reliable trading platforms.

 

Tip 5: Transparent Fees Structure

Choose a platform that has a transparent pricing structure and is upfront with its fees from the get-go. For example, the user-friendly trading platform Superhero sets out all of its fees in an easy-to-read schedule that is readily available online to potential investors. For further ease, they promise to advise account holders before charging a fee. 

Most importantly, never sacrifice security to save a few dollars on fees––don't be drawn to unregulated brokers offering overly low trading costs. The headache of recovering funds from a scam is rarely successful.

 

Tip 6: Live Customer Support

Trading is a fast-lane process, especially for a beginner. Look for a trading platform that offers phone, email and live online chat support.

Okay, those are some of the features you need to consider when choosing the right trading platform. Now let's look at the process.

 

So What's Out There...

A lot. But here is one you might want to look at– Superhero. It's an online platform that allows its traders to invest in Australian shares, U.S. shares, and ETFs. You can also invest your super without needing a self-managed super fund. It aims to make investing for beginners accessible and understandable.

There is no one way to guarantee a return on your investment, but with some research and a suitable platform, you’re off to a good start. Altus is here if you need more robust financial advice about wealth management, retirement planning, and superannuation.​​

What Is Arbitration and Who Does It Favor?

 

The United States litigation process is both expensive and time-consuming. That is why many individuals who find themselves in a legal dispute will face the possibility of arbitration.

Arbitration is handled outside of the traditional court system. In this alternative process, an arbiter is a qualified decision-maker – often a lawyer or a retired judge – who hears both sides and issues a decision.

Nearly 8 million cases have gone through arbitration since the Federal Arbitration Act passed in 1926, according to the American Arbitration Association. The act established that arbitration decisions as “valid, irrevocable and enforceable.” Following arbitration, parties are prevented from subsequently entering the dispute into the traditional court system.

The Arbitration Process

Generally, arbitration occurs between two parties who are citizens of a country where the arbitration is performed. There is also international arbitration, where two foreign parties find a neutral forum for dispute resolution in another country.

Compared to traditional court procedures, domestic arbitration follows a simpler process.

“Arbitration (requires) much less discovery, fewer depositions, and a hearing that wouldn't be dissimilar to a judge trial in federal court,” explains Luke Sobota, partner at the law firm Three Crowns and lecturer at Harvard Law School. The hearing is likely to include “opening arguments, closing arguments, and cross-examination of key witnesses and experts.”

The in-person hearing offers each side of the dispute the opportunity to present its arguments and evidence to the arbitrator. After the hearing has ended, the arbitrator enters deliberation and subsequently produces a written decision determining the winner of the dispute.

Why Arbitration?

Arbitration is often a desirable alternative to the U.S. court system. According to Sobota, parties mostly prefer it as a “quicker and cheaper” alternative to litigation, which will require an expensive and prolonged discovery process, even before the matter makes it to trial.

Additionally, arbitration keeps disputes confidential. This is helpful for individuals who would like to keep their private affairs under wraps. For example, shareholders may want to settle a dispute privately through arbitration because filing it in the U.S. court system could publicize the dispute, potentially affecting stock values.

For conflicts involving individuals in different countries, international arbitration is frequently chosen because it is a neutral forum for resolving disputes.

Who Does Arbitration Favor?

While Sobota does not think that “the deck is stacked” to favor any one particular party, he acknowledges that individuals who have participated in many arbitrations may have an advantage.

“Reinsurance is a major source of arbitration and the reinsurers are repeat players,” Sobota says. “So they know the arbitrators better and probably have some systemic advantage.”

Notably, the arbitrator selection process requires both parties to agree on the arbitrator. Typically, they mutually decide on an arbitrator and a neutral institution to select an arbitrator. Less frequently, each party will pick one arbitrator and then the two arbitrators will decide jointly on a third.

“So, typically, it actually is a pretty level playing field,” Sobota says.

Parties might choose to avoid arbitration, however, if it is a dispute governed by specialized courts. For example, if a dispute concerns a U.S. patent, the arbitrator’s decision will only apply to that particular dispute. Only U.S. federal courts have the power to decide the scope of patents for all purposes, so the issue would have to be re-arbitrated or go to court if the patent was infringed upon again.

Arbitration may also seem like a risky move because it does not give parties the right to appeal a verdict, so there is only one result and “no real second bite at the apple,” Sobota says.

“Depending on your panel, or the sole arbitrator, you can get more erratic decisions than if you go through the entire appellate process,” Sobota says.

Trends in Arbitration

Mandatory arbitration clauses are growing in popularity. These are clauses added to contracts that prevent parties from pursuing disputes in U.S. courts. Instead, it forces those disputes into arbitration.

These clauses are particularly common for employers hoping to prevent employees who feel wronged from bringing costly lawsuits against them. The Economic Policy Institute estimated in 2018 that more than 55% of U.S. workers were subject to mandatory arbitration clauses. It also notes that they are more common in low-wage workplaces.

The courts have generally found these provisions to be enforceable under the concept of “freedom of contract.” This means that if you have signed an employment agreement that includes a mandatory arbitration clause, you will likely be forced into arbitration procedures if an issue arises.

Should You Make a Free Will Online?

 

Writing down how to divide your assets is an essential start to estate planning that can be easily overlooked. Among Americans, 2 out of 3 adults do not have an estate plan, according to a 2023 online survey of 2,483 adults by Caring.com.

The COVID-19 pandemic and inflation may have inspired some individuals to think about creating a will, as younger Americans are 63% more likely to have an estate plan in 2023 compared to 2020, according to the survey.

“Whether you are young or old, rich or poor, everyone can benefit from having a last will and testament," says John P. Farrell, an estate planning and probate lawyer at the Farrell Law Firm in Marietta, Georgia. If you have a document in place, you’ll reduce the risk of family disputes as well as potentially high legal fees.

Plenty of online tools allow you to efficiently create a will. A quick search will lead to various websites offering to help you draft a will in a fraction of an hour. But before clicking through, it’s important to evaluate your options.

ollow these guidelines to decide if an online will is the best fit for you:

• Know your options for a will.
• Check the laws for wills in your region.
• Consider your estate.
• Compare the costs of a will.
• Tell heirs how to find the will.

Know Your Options for a Will

There are essentially three ways to write a will. “You can prepare it yourself, use a do-it-yourself service or seek the assistance of an estate planner,” Farrell says. If you draft a will on your own, you’ll want to make sure you have a solid grasp of your assets and can share detailed instructions regarding beneficiaries. Some retailers offer a will kit to guide you through the steps.

If you use an online service to write a will, you’ll have access to software. However, it may lack certain aspects that you might want, including the chance for an in-depth discussion with a professional. Many online options allow you to make updates over time if your circumstances change.

Working with a professional to create a will gives you the opportunity to have an expert help you think through the details of your estate plan. You’ll be able to review your household members and their needs and go over your personal preferences in a confidential setting.

Check the Laws for Wills in Your Region

Before grabbing a pen or looking for willing-making services online, research the legal requirements in your area. Each state has its own laws regarding estate planning. In some states, the will can be handwritten, but other states require a typewritten version to make it valid. Some states require just two witnesses, while others require a will to be witnessed, notarized and typewritten.

Consider Your Estate

Your assets and your family situation are major considerations when drafting a will. “There are many people who have written their own wills, and the estate has been fine,” Farrell says. “This type of estate planning, however, is usually suited for the most basic of estates, such as someone with a single piece of real estate and a small amount in investments.”

If you have a larger estate or heirs with certain medical conditions, you may benefit from the expertise of a professional. For example, if you have a child with special needs who receives government assistance and you want to pass assets to them in a way that won't cause their benefits to be reduced, a legal professional can help. If you have minor children, “then your will must contain a clause outlining who should care for your children if you die before they turn 18,” says Kelsey Simasko, an attorney at Simasko Law in Mount Clemens, Michigan.

You might also opt for an attorney to reduce your exposure to probate fees, which are generally charged when the will is reviewed to make sure it is valid. If you’re thinking of moving your assets into a revocable living trust to avoid probate fees, an estate planner could help you sort through the associated costs and benefits.

Compare the Costs of a Will

A handwritten or typed will can be created at no cost. Many online services set a price at less than $300 to create a will. “Most estate planners charge more than your average do-it-yourself service,” Farrell says. For help with a will, an attorney might charge $500 or more, depending on where you live and what you need.

If you write a will on your own, be specific when relating your wishes. “The costs may be on the back end if the process of probating your will becomes complicated because your will isn’t clear about where everything should go,” Farrell says.

If you have a complex situation, you may ultimately pay less by using an attorney. “Part of the benefit of working with an attorney is that most attorneys have helped hundreds, sometimes thousands, of families work through decisions,” says Steven M. Zelinger, an estate planning attorney in Philadelphia. A professional can offer insight into setting up guardians for minor children or appointing an individual to be in charge of the distribution of the estate. “There are often tax considerations the average person would not know about,” Zelinger says.

Tell Heirs How to Find the Will

Regardless of the way you draft a will, keep the final version in a safe spot and let others know about it. If you move the document, you’ll want to update family members as well. That way, you will all have peace of mind regarding its location, and your loved ones will likely appreciate your efforts to stay organized.

 

How Lawyers Can Navigate the Ethical Minefield of Legal Advertising

 

Attorney advertising is vital to law firm success and profitability, but marketing continues to pose legal ethics issues that must be addressed at every turn.

In the decades since the Supreme Court issued its 1977 opinion of Bates v. State Bar of Arizona, which legalized attorney advertising, states have become more lenient about lawyer marketing, while the courts often strike down onerous limitations.

When it comes to the formal limitations on advertising, “All the restrictions are eroding,” says Thomas Spahn, counsel at McGuireWoods, who has authored several books on attorney ethics.

In the meantime, there is probably more variance between states on ethics rules for attorney advertising than there is on any other issue, according to Spahn.

And this is hurting consumers on a national scale, some experts say.

But until this is resolved, attorneys contemplating new advertising should consult their state bar association rules and protocols, Spahn says.

Philosophical Stumbling Blocks to Attorney Advertising Remain

Even as the rules fall, there remains a philosophical tension relating to attorney advertising.

Many lawyers still hold the view that advertising is unseemly. On one hand, there is a concern that legal advertising may target those most in need of counsel but least able to evaluate an attorney’s claims.

On the other hand, legal advertising can give people information they wouldn’t otherwise learn, says Elizabeth Tippett, an associate professor at the University of Oregon School of Law who studies how legal advertising influences consumer behavior.

Attorney Advertising Cannot Be False or Misleading, Even When It’s the Truth

All states prohibit attorneys from using false and misleading content in advertising. Further, this goes beyond outright falsehoods. It also includes omissions of facts and debatable opinions.

States frequently prohibit attorneys from describing themselves as “the best” or using other superlatives to describe their work, unless the term is related to an independent peer assessment such as U.S. News’ list of Best Lawyers. In some jurisdictions, attorneys can say they “specialize” in a practice but cannot say they are “specialists” unless they have a certification in the field.

Even true statements can be prohibited if they mislead someone. For example, if a law firm accurately states it had a $1 million victory in court, but implies future clients will receive similar results, that would be a violation, Spahn explains.

What Does 'Advertising' Mean?

Generally speaking, attorney advertising is any way lawyers might communicate to the public about the services they provide.

Advertising includes commercials, brochures, business cards and stationery. Depending on the state, it might include a firm’s website, newsletters and more.

Some states, such as Florida, Nevada and Texas, require attorneys to submit almost all advertising to the bar for review. However, even these states have exceptions to the rule. 

Advertising Is (Mostly) Okay While Solicitation Is (Mostly) Forbidden

While attorney advertising is generally allowed, solicitation is usually forbidden.

Solicitation is a communication directed to an individual with whom the attorney doesn’t already have a personal or professional relationship.

But the line between advertising and solicitation is often blurry. The difference is based on how intrusive the communication is, Spahn says.

For example, attorneys could probably send everyone in a zip code informational letters about their rights if they are arrested. But for periods of time, states can prevent attorneys from sending letters to accident victims about their rights to sue because the victims are presumptively too traumatized to make an informed decision about attorney representation.

Things get even fuzzier when technology is involved. When an attorney pitches work via text or in an online chat, that is considered advertising since someone can easily ignore the attorney’s comment. However, the difference between solicitation and advertising may, at some point, hinge on whether or not an attorney’s camera was off during a Zoom.

Paying for Advertising Is (Probably) OK, Referral Fees and Fee Splitting Are Not

Marketing strategies typical in other fields – such as paying percentages tied to referrals – pose ethical dilemmas for attorneys.

While attorneys can pay flat fees for advertising, paying a marketer based on the advertising’s success could be an unlawful fee split, particularly if the marketers are nonlawyers.

Attorneys can pay online directories if it’s the internet equivalent of a phonebook listing, but attorneys shouldn’t pay directories to match clients with them or to recommend the firm. That could be a prohibited referral fee.

Attorney Contact Information: A New Challenge in an Era of Remote Work

States often require that any attorney advertising includes the address of the firm’s bona fide office, where the attorneys work on a regular basis. And it can be considered false advertising if the firm’s contact information on a website or stationary is a P.O. Box, a communal workspace or an answering service.

Solo practitioners and small firms need to be aware that, even as they satisfy other ethics rules regarding work in a remote environment (e.g. preserving client records), their virtual law firm could still run them afoul of this advertising rule.

Mass Tort Claim Advertising: How New Regulation Could Change the Field 

While the trend has been to reduce legal marketing restrictions, there is a call to increase regulation of ads relating to drug and medical technology mass tort litigation. Attorney advertising relating to drug injury claims is a $114 million-a-year business. Between 2015 and 2022, there were more than 370,000 television commercials for just one drug injury mass tort – linking the use of talcum powder and cancer.

Tippett, her colleague, Jesse King, and others have concluded these ads impact consumers – sometimes to catastrophic effect. After seeing commercials about the drug lawsuits, a few patients have died because they discontinued use of prescriptions.

In light of these findings, a handful of states are regulating drug injury advertisements.

However, Tippett and King discovered that the majority of advertisements were run by sophisticated marketers, not lawyers, so rules regulating attorneys didn’t apply. When law firms did run ads, they acted as intake specialists who forwarded clients to other firms and rarely represented anyone in court.

According to Tippett, the mass tort ads illuminate shortcomings of ethics-based regulation of attorney advertising. The myriad of different state regulations make it difficult to police national marketing efforts, and state bars don’t have the expertise or capacity to handle the issue. And not all of the bad actors are lawyers.

For her part, Tippett doesn’t think there’s anything inherently wrong with law firms specializing in legal marketing. But transparency, oversight and regulation are key, and they should be led on a national level by an agency such as the Federal Trade Commission, with a mission of protecting consumers, she says.

5 Documents to Prepare Now for Your Heirs

 

 It can be hard to distill a lifetime of accomplishments and dreams into a stack of papers for your heirs. Getting these documents together, however, will be a final parting gift for the ones you love

No one likes to think about death and end-of-life arrangements. However, being prepared for the inevitable is not only a smart thing to do, it's also a kind thing to do for loved ones.

Failing to put your paperwork in order means family or friends will have to rely on the probate court to determine the fate of your property. Depending on your state, that could entail hiring a lawyer, paying court fees and waiting for a judge to decide how best to distribute assets.

What’s more, heirs may miss out on life insurance benefits or overlook accounts because they don't know they exist. 

"If you do it right, there is additional (financial) return for your heirs,” says Travis Anderson, managing member of TBH Advisors in Brentwood, Tennessee.

That's why it's crucial for you to have important documents ready for your loved ones. Here are the 12 documents you should start preparing now:

• Will.
• Trust.
• Letter of explanation.
• List of financial accounts and beneficiaries.
• Personal inventory.

1. Will

When it comes to estate planning, a will is likely the first thing that comes to mind. This legal document lets you name an executor to carry out your wishes, heirs for your assets and a guardian for any minor children you may have.

Wills can also be used to make arrangements for pets.

"Clients frequently enjoy naming their specific pets in the will, but the provision should always include the named pets ‘and any other pets I may own at my death,’” says Lucy Marsh, a professor in the Sturm College of Law at the University of Denver. It’s a good idea to name a specific person in the will for pet care, along with a backup choice.

2. Trust

“Everyone knows the will, but the will is not the best way to pass on assets,” says Kelsey Simasko, an elder law attorney with Simasko Law in Mount Clemens, Michigan. That’s because a will still needs to go through the probate process. Instead, she recommends using a trust.

Trusts bypass probate court and also allow more control over how assets are distributed. For instance, a trust can stipulate that minor children won’t receive unfettered access to their inheritance until a specified age. That way, the money “can be used to enhance their life, not ruin their life,” Simasko says.

Even those with a trust should write a will, particularly if they are a parent to minor children. The will, rather than the trust, is where you indicate who you do – or do not – want to have guardianship.

3. Letter of Explanation

While the will or trust stipulates how assets are to be divided, a letter of explanation can provide the rationale for these decisions.

This can be especially important in instances when assets are not being divided equally. Knowing why a sibling was chosen to receive a larger share of an estate may help avoid animosity between family members.

Consider sitting down with heirs to share this information in advance.

"You can’t leave these big reveals for the lawyer,” Simasko says. If sharing this information feels awkward and uncomfortable, she suggests to her clients that they invite adult children to a meeting in her office. That way, an attorney can serve as a neutral third party to the conversation.

4. List of Financial Accounts and Beneficiaries

Maintain a list of all your finances, including bank and retirement accounts and brokerage funds. Each of these accounts can have a designated beneficiary or transfer on death provision, known as a TOD. Beneficiaries or TOD designees automatically get ownership of the asset after you pass away.

It’s not unusual for people to forget to update beneficiaries on accounts or assume they don't need to worry about beneficiaries if they have a will. However, whoever is named beneficiary receives the asset even if the will says otherwise.

For that reason, it’s important to revisit these documents regularly. “Your estate plan changes just like your life does,” Anderson says.

5. Personal Inventory

Most wills distribute personal property in broad terms, such as designating jewelry to one person and household goods to another. To ensure nothing important gets overlooked, it's also helpful to have an inventory of personal items available.

“It helps with personal effects and alleviates a lot of stress,” Anderson says. That may be especially true if you have items stored elsewhere, such as a storage unit, that your family might not know about.

In some states, a personal property memorandum can be used to indicate who should get specific items. “This is a great way for people to be able to say who is to have various small items, such as fishing poles, special bits of jewelry, special quilts, dishes, and the like,” Marsh says.

“Only tangible personal property – things you can pick up and hold (excluding money) – can be included on one of these memorandums,” Marsh adds. What’s more, the memorandum is valid only if it's mentioned in the will.

 

 

 

Direct Line to pay out £30m to customers overcharged on car or home insurance after rule breach

 

Direct Line is set to pay out around £30 million in compensation to customers who were overcharged when they renewed their car or home insurance.

The insurer admitted to an “error” in implementing the financial watchdog’s new pricing rules which came into effect at the start of 2022.

The error meant existing insurance customers were charged more for their renewal than they would have done if they were a new customer, the Financial Conduct Authority (FCA) said.

The admission comes after The Independent revealed that almost 12,000 complaints were received by the Financial Ombudsman Service (FOS) in the past year – a four-year high – making car insurance the third most complained-about financial product, behind current accounts and credit cards.

The revelation follows this newspaper’s exposé into the great car insurance con, which found that car insurance premiums have been hiked by 48 per cent over the past year.

Car insurance is now the third-biggest household bill, behind council tax and energy, with soaring costs driving many motorists to sell up.

Direct Line was forced to act after the FCA brought in new rules last year, which prevent renewing home and motor insurance customers from being charged higher prices than a new customer would be charged.

“An error in our implementation of these rules has meant that our calculation of the equivalent new business price for some customers failed to comply with the regulation,” Direct Line admitted.

“As a result, those customers have paid a renewal price higher than they should have.”

The insurance company said it has launched a review into its past policies.

Direct Line did not specify how many people were expected to be compensated but it estimated that the total payments to affected customers would be in the region of £30 million.

Not all customers who have renewed their home or car insurance since the FCA’s new pricing rules came into effect will have been overcharged, it is understood.

Direct Line said it would be contacting affected customers directly, and customers do not need to do anything themselves at this stage.

 

What are the highest-paying CD rates right now?

 

 

Looking back at 2020 and 2021, interest rates were extremely low across the board. Mortgage rates were hovering near 3% — which was a big draw for potential homebuyers — and the rates on everything from personal loans to car loans were lower than normal, too. But while that may have been great for borrowers, savers weren't so lucky. Deposit account interest rates were also quite low at that time, so there wasn't much room to substantially grow their savings account balances — not if they were just relying on interest, anyway.

That's no longer the case these days, though. The Federal Reserve has increased its benchmark rate nearly a dozen times over the last 18 months, and the tables have turned. Borrowing is now a lot more expensive than it was just two years ago, but savers now have the opportunity to earn significant returns on the money in their savings accounts.

And while high-yield savings accounts are one good option — in fact, you can easily find a high-yield savings account offering a rate of 5% or more right now — there are other good options to consider as well. That includes certificates of deposit (CDs), many of which are offering even heftier returns on your money. But if you want to maximize the returns on your savings, it's important to know what CDs are offering the top rates today — and what the requirements are for opening an account.

What are the highest-paying CD rates right now?

If you're looking for the highest-paying CDs right now, the following options may be worth considering:

• Credit Human Federal Credit Union 1-year CD — 6.00% APY: $500 minimum deposit requirement to open; a penalty is imposed for early withdrawal
• TotalDirectBank 6-month CD — 5.76%: $25,000 minimum deposit requirement to open the CD and earn the advertised APY; maximum deposit amount per client is $1 million; a penalty is imposed for early withdrawal
• Forbright Bank 9-month CD — 5.75%: $1,000 minimum opening deposit requirement to open; early withdrawal penalty is equivalent to three months of interest
• Popular Direct 1-year CD — 5.67%: $10,000 minimum opening account deposit and balance requirement; $25 fee for closing the account within 180 days
• LendingClub 1-year CD — 5.65%: $2,500 minimum opening deposit requirement; maximum deposit amount of $250,000; a penalty may be imposed for early withdrawal
• Newtek Bank 2-year CD — 5.60%: $50,000 minimum opening deposit requirement to open the account; $50,000 minimum balance requirement to obtain the advertised APY; maximum opening deposit is $220,000
• Valley Direct Bank 3-year CD — 5.60%: $500 minimum deposit requirement to open; $500,000 maximum deposit amount; $500 minimum daily balance required to obtain the advertised APY
• Western Alliance 1-year CD — 5.51%: $1,000 minimum deposit requirement to open; early withdrawal penalty applies if funds are withdrawn within six days of account opening or subsequent withdrawal
• Bread Savings 1-year CD — 5.60%: $1,500 minimum opening deposit requirement; maximum deposit limit of $1 million per account and $10 million limit per customer; a penalty is imposed for early withdrawal 
• MYSB Direct 6-month CD — 5.36%: $500 minimum deposit requirement; $5,000 balance requirement to earn advertised APY; a penalty may be imposed for early withdrawal
• Popular Direct 2-year CD — 5.30%: $10,000 minimum opening account deposit and balance requirement; $25 fee for closing the account within 180 days
• Quontic 1-year CD — 5.30%: $500 minimum deposit requirement to open; no monthly service fee; a penalty is imposed for early withdrawal
• Bread Savings 2-year CD — 5.25%: $1,500 minimum opening deposit requirement; maximum deposit limit of $1 million per account and $10 million limit per customer; a penalty is imposed for early withdrawal 
• Discover 1-year CD — 5.20%: $2,500 minimum deposit requirement to open; withdrawing your funds early will result in an early withdrawal penalty worth six months of interest
• Quontic 6-month CD — 5.05%: $500 minimum deposit requirement to open; no monthly service fee; a penalty is imposed for early withdrawal
• Popular Direct 3-year CD — 5.00%: $10,000 minimum opening account deposit and balance requirement; $25 fee for closing the account within 180 days
• CIT Bank 6-month CD — 5.00%: $1,000 minimum deposit requirement to open; a penalty may be imposed for early withdrawal of principal and any early withdrawal (principal or interest) will reduce earnings

The bottom line

Settling for a low savings rate isn't necessary these days. There are lots of CD accounts offering top rates on your money — and there are a variety of CD terms to choose from. That means there are options for every type of saver, whether you have a ton of money to deposit or whether the focus is on your short-term or long-term financial goals. But if you want to rake in the interest returns, it may make sense to move quickly. Rates can change quickly, but if you open a CD today with a top rate, you'll lock it in for the full term, no matter what happens with the overall rate environment.

 

 

MoneyWatch For some people with student loans, resuming payments means turning to GoFundMe

 

Student loan repayments resumed in October after a three-year pandemic-era pause and the Supreme Court this summer dashed hopes for relief by blocking President Biden's plan to erase up to $20,000 in debt for eligible borrowers.

With the resumption of payments proving a financial hardship for many Americans, some people are turning to other means to find the money: asking for handouts. 

Through October, the number of crowdfunding campaigns on GoFundMe tied to college loans has surged nearly 40% over the last 12 months, with those seeking to raise money coming from diverse backgrounds and across all age brackets, according to data the platform shared with CBS MoneyWatch. 

"GoFundMe is often a reflection of real-time needs because it is a resource people turn to when they find themselves with unexpected expenses," Margaret Richardson, GoFundMe's chief corporate affairs officer told CBS MoneyWatch. 

Similarly, GoFundMe saw a five-fold increase in fundraisers by schools trying to raise money when an emergency federal program offering free school meals ended in 2022.

More than half of federal student loan borrowers said say they would have to choose between making loan payments when the pandemic forbearance ended and covering necessities like rent and groceries, an August survey from Credit Karma found. Food banks also report an increase in requests for assistance since student loan payments resumed.

"As people realize they have obligations and are already at or beyond their budgets, GoFundMe is often a place people will turn for support from their families and communities to meet their needs in ways they otherwise can't between their income and savings," Richardson said.

Among the student-loan related GoFundMe campaigns is a plea for help from Jevaughn Edwards, a Drexel University senior studying economics. Edwards wrote that his grandparents, the cosigners on his student loans, recently passed away.

"As I embark on the last year of my studies, I am seeking any sort of support, aid, etc. that may be available to me. I am currently unregistered for the upcoming quarter due to a financial hold on my account amidst my situations," Edwards said, adding that he has "no other resources to tap into."

Edwards told CBS MoneyWatch that he has turned to GoFundMe as a "last, last, last resort" to afford his final year of college, so that he can earn his degree and hopefully land a high-paying job that would allow him to pay off his outstanding student loan balance.  

"Honestly if I wasn't extremely desperate, I wouldn't have placed a GoFundMe on the internet. Asking for help publicly is icky for me," Edwards said. 

He's received job offers from several companies but they hinge on his obtaining a degree first, he said. 

Edwards is trying to raise $40,000, which reflects what he would owe were he to recommence his studies. To date more than 50 people have donated a total of just over $3,000. 

"A lot of people I don't know have donated. I have a really good LinkedIn profile so I received donations from people I don't even know on there," he said. 

Another college student, Michael Paddleford, started a campaign two weeks ago to pay off his remaining tuition balance in order to receive a bachelor's degree in criminal justice and human services. 

"Unfortunately, I was recently notified of a remaining balance on my account that will prevent me from receiving my degree until it is paid off," he wrote. "I have maxed out my student loans, and Financial Aid covered all but $5000 of my tuition costs."

Five donors have contributed $270 against his $5,000 goal.

Of course anyone can make up a story, but GoFundMe said one reason why the fundraising model works is that "everything is public."

"So there is social proof. If someone says they have a medical condition and publicize it to their networks, often networks' awareness of the medical condition is the social proof," Richardson said.

GoFundMe also has a policy of refunding money to donors who have given to campaigns started by people whose stories turn out to have been fabricated. "We have a GoFundMe guarantee to reimburse donors for anything they don't feel was right with a campaign they donated to," Richardson said.