Buying property in the US as an Australian – Is it hard?

However, Australian and other foreign buyers often face stricter financial requirements than US citizens. For example, non-residents or buyers without a US credit history may need to make a larger down payment to qualify for a mortgage.

It’s also important to understand that owning property in the US does not automatically give you the right to live there.

Can Australians buy property in the US? 🤔

In short – yes. ✅ There are no legal restrictions on Australian nationals buying property in the US. However, the process can be more complex for foreign buyers than for US citizens.

💡 Here are some of the things to consider before making a purchase:

• State-specific property laws: The property-buying process can vary across US states, so spend some time researching local laws and any implications.
• Financial requirements: Non-residents may face stricter mortgage requirements, including larger down payments and higher interest rates, especially if they have limited US credit history.
• Taxes: There are both federal and state/local property-related taxes in the US, and things are more complicated for foreign nationals with cross-border tax obligations.

If you are purchasing US property from abroad, Wise provides an easy-to-use and low-cost way to move money abroad for a property purchase. You can transfer money from Australia to the US at the mid-market exchange rate, with low transparent fees.

Wise also offers discounts on transfer fees when you transfer large amounts (over 20k GBP or equivalent), which can help you keep the costs low when you’re purchasing your property or making mortgage payments.

What buying property in the US gets you 🔍

💡 Here’s what you will get if you buy a US property as an Australian citizen:

• A home in the US: This could be as a holiday home for visits, or a permanent home if you have the right to live in the US.
• Investment opportunities: You could earn rental income from the property or benefit from increases in real estate value over time.
• Access to financing: As the property builds equity, you may be able to use it as collateral for loans in the future, depending on your financial situation and lender requirements.

What buying property does not get you ❌

The most important thing to remember is that buying US property does not grant you a US visa, residency, citizenship, or the right to work in the country.

Owning a home in the US may strengthen your application for a visa, permanent residence, or citizenship, for example by demonstrating financial stability or ties to the US. However, you will need to make a separate application for any of these through the relevant authorities.

How difficult is the process?

The process for buying US property as a foreigner is fairly straightforward, although it can take longer than it does for a US citizen – especially if financing is involved. In general, expect the whole process to take between 4-6 months, and around 30-90 days after an offer is accepted.

Documents you usually need to provide include:

• Valid photo ID, such as a passport
• US tax number, either a SSN for residents or ITIN for non-residents
• Proof of funds for the purchase, such as bank statements, asset documentation, or a mortgage pre-approval letter
• Proof of your current Australian address, e.g., utility bill or official correspondence
• Proof of creditworthiness (if applying for a mortgage)

You won’t necessarily need a US bank account to buy property in the US, although it will make things easier to pay deposits, closing costs, mortgage repayments, taxes, insurance, and ongoing property expenses.

Forms and documents commonly involved in the purchase process include:

• Purchase agreement: Legal contract between the buyer and seller, required for all property sales.
• Relevant tax forms: Forms to confirm that you are not a US citizen for tax purposes, plus you may need to sign Foreign Investment in Real Property Tax Act (FIRPTA) documentation.
• Title documents: These confirm the legal transfer of ownership of the property.
• State or local forms: These may relate to additional disclosures about the property.

Typical timelines 🗓️

Here is a typical timeline for buying US property as an Australian citizen, from finding a property to closing the process:

Process	Typical timeline
Finding a property	One week to two months
Offer acceptance	One week
Mortgage approval (if needed)	Up to 8 weeks
Property inspection and valuation	1–3 weeks
Legal checks	1–3 weeks
Closing process	Up to 2 weeks

Transferring money to the US for the purchase 🇦🇺 > 🇺🇲

If you are buying US property from overseas, you can use Wise to move money abroad for the property purchase. Wise money transfers and currency conversions use the mid-market exchange rate with transparent upfront fees and no hidden costs. This can save substantial amounts on large foreign purchases.

For real estate purchases, you can use Wise to transfer money between your Australian and US bank accounts at low rates. You can also benefit from additional discounts on large transfers.

Alternatively, you can also open a Wise Multi-Currency Account to hold and manage money in 40+ currencies including USD and AUD, spend with the linked debit card and convert currencies with mid-market exchange rate.

What are the tax implications?

You will need to consider the tax implications of buying US property as an Australian. Tax residency is important, as Australia taxes residents on worldwide income, such as rental income and capital gains in other countries. Meanwhile, you will have tax obligations in the US regarding property-related income there.

Fortunately, the US and Australia have double tax treaties to help prevent payment of tax twice on the same income.

In the US 🇺🇸

One-off and ongoing property-related taxes in the US may include:

• Transfer tax: Taxes or recording fees payable on purchase or sale of property, varying by state and local jurisdiction. These can be up to around 4% of the sale price.
• Property tax: An annual tax levied by US states and municipalities, usually up to 2% of the property value.
• Income tax: You will usually have to pay this on any rental income on the property at the standard progressive rates. State income taxes may also apply.
• Capital Gains Tax: Due at rates of up to 20% on the sale of property owned for more than a year (gains on sales owned for less than a year are included with income tax).
• FIRPTA: A withholding tax of 15% of the gross sale price usually withheld by buyers when purchasing from a foreign owner. This is a withholding mechanism rather than the final tax liability, and excess amounts may be reclaimed by filing a US tax return.
• Inheritance/estate tax: Inheritance tax in the US only applies in five states, while federal estate tax can apply to real estate owned by non-US citizens. The standard exemption available to non-US domiciliaries is much lower than the exemption available to US citizens and residents (often effectively only $60,000 before treaty relief).

In Australia 🇦🇺

If you remain an Australian tax resident, you will be liable for tax on your worldwide income. This could include:

• Income tax: On rental income at the progressive rates.
• Capital Gains Tax: If you sell the property you may be liable for tax on the financial gains made.

As tax can be complicated, particularly when dealing with cross-border obligations, it’s a good idea to seek advice from a qualified professional before making any overseas purchase.

Local laws and regional variations

Aside from differences in local taxes and property markets, each US state has its own property laws. These laws cover everything from the property-buying process to restrictions on buying certain types of property or land.

💡 Many states have introduced restrictions affecting foreign ownership. Since 2021, a total of 44 states have proposed or enacted laws limiting property ownership by certain foreign individuals, governments, or companies, and 28 states are considering legislation related to foreign property ownership.

Most of these measures target buyers connected to “foreign adversary” nations – typically China, Iran, North Korea, and Russia – or foreign-controlled companies. In many cases, the restrictions focus on agricultural land, land near military bases or critical infrastructure, or large rural properties rather than ordinary residential homes.

Because the rules vary significantly by state, it is a good idea to check local requirements before purchasing. A local real-estate attorney, title company, or realtor can usually provide guidance. You can also use the Committee of 100 state legislation tracker to review current restrictions by state.

Renting out your property: is it allowed? 🤔

If you buy property in the US as an Australian or other foreign national, you can usually rent it out without any restrictions. There are no US citizenship or residency requirements for renting out US property.

However, you will need to consider:

• Landlord licensing: Some states or localities have landlord licensing or registration requirements.
• Insurance: Landlord insurance is advisable and may be a requirement if you take out a mortgage.
• Tax: You’ll usually have to pay income tax on rental income.

In most parts of the US, foreign owners can turn their property into a short-term holiday rental. However, some cities and counties have restrictions on short-term lets. These include New York City and Los Angeles.

Buying land in the US

The rules for buying land in the US are similar to those for buying real estate. There are no federal restrictions on Australian nationals buying land to build property. However, some states have laws restricting foreign ownership of certain types of land, such as agricultural land or land near military bases/critical infrastructure.

You can find more information on the Committee of 100 state legislation tracker.

Getting a mortgage: Should I get one in the US or Australia?

If you need to finance your property purchase, you will need to decide whether you want to take out a mortgage in the US or Australia. The best option will depend on your individual circumstances and preferences. There are a number of US banks and mortgage brokers that offer mortgage products to non-residents, although the requirements are normally stricter. You may also have to pay higher interest rates.

Australian lenders may also provide financing for overseas property purchases. They typically require you to use your Australian home as equity and borrow against the property. Getting an Australian mortgage is often easier and quicker to arrange, but it comes with its own risks and may not be possible if you don’t already have Australian property or a mortgage.

Factors to take into account include:

• Currency risk: A US mortgage generally reduces currency-mismatch risk because the property, debt, and any rental income are all in USD. Borrowing in AUD for a US property could significantly increase your costs if the AUD weakens against the USD.
• Tax/accounting: Managing tax and accounting is often simpler when both the property and mortgage are in the same country and currency.
• Mortgage structure: Both countries offer fixed- and variable-rate mortgages, but terms can differ significantly. In the US, longer fixed-rate periods (such as 15- or 30-year fixed mortgages) are more common.
• Down payment/deposit: Non-residents obtaining US mortgages typically need a down payment of around 25–40%, although this can be higher in some cases. Australian financing usually means against existing property equity instead.
• Other financial requirements: US lenders may require proof of income, cash reserves, and local credit history, which can be more difficult for non-residents or new arrivals.

Another option is a “hybrid” approach where you use equity from your Australian property for the deposit and then get a US mortgage to cover the remaining amount. This reduces the US borrowing obstacle while keeping most of the debt in USD.

Before taking out a mortgage in either country, it’s important to compare lenders carefully and consider the long-term financial implications, including exchange-rate exposure, taxes, and refinancing flexibility.

The verdict: Should you buy a house in the US as an Australian?

Pros	Cons
✅ Stable and varied property market ✅ Chance to live in the US if you have a visa/residency ✅ Nice holiday home if you live abroad ✅ Established English-speaking expat communities in many cities ✅ Possibilty of rental income with high yields ✅ Can buy and get a mortgage as a non-resident	❌ High upfront costs, with down payments sometimes 40% or higher ❌ Tax complexity, with both federal and state taxes applying, plus dealing with cross-border tax issues ❌ Exposure to inheritance/estate tax which generally doesn’t apply in Australia ❌ Currency fluctuations can increase mortgage repayments ❌ Difficulties of remote property management if you live abroad

Useful resources

(Information last checked on 27th May 2026)

Real estate agents

• Compass – expat-friendly brokerage service with good digital experience for remote buyers
• Sotheby’s International Realty – renowned luxury property specialist with good international buyer experience
• Zillow – good platform for finding local real estate agents in the US

Main expat areas in the US

• Florida – popular for the warm climate and holiday-home culture, especially in cities like Miami and Orlando
• New York – large international community and home to many Australian professionals in sectors such as finance, law, and media
• California – global tech hub with a strong international presence and a thriving startup culture
• Texas – more affordable city with lower housing costs and no state taxes but strong job growth