From where we sit reducing the cash rate seems to be working with a lot more property transactions occurring. The Auction clearance rates on the eastern seaboard have been trending up…

Most property investors have all heard that buying in your own backyard has its advantages. For one, you know the area intimately and have a much better opportunity to learn the ins and outs when it comes to generating income from a residential dwelling – who is your target market when it comes to finding a tenant? What type of resale value can you expect from the area? What type of capital growth has the suburb delivered over the long term?

Yes, buying close to home certainly has its advantages and makes the all important research that goes into a successful property investment a lot easier.

Combine the continuing strength of our dollar against America’s Greenback with a flailing US housing market where historically low values are fostering bargain buys and you have the perfect ingredients for adventurous Aussie property investor’s looking to cash in on opportunities in “the promised land”.

According to data from the National Association of Realtors based in Washington, Australians invested around $600 million in U.S residential properties in 2010 alone.

With most economists predicting inflationary pressures to continue into 2011 and 2012 – largely due to China’s obsession with our local resources – many are forecasting at least two more rate rises from the Reserve Bank this year and some are even suggesting an increase of 1% by the beginning of 2012.