Buying Property in the United States as a New Zealander: 2024 Guide
The United States offers a mix of dynamic cities, varied climates, and a rich cultural landscape, making it a top destination for real estate investors and individuals looking to relocate. This guide provides a comprehensive overview of the process, benefits, and considerations of buying property in the United States as a foreigner.
Table of contents
- Welcome to the U.S.
- What are the current market trends in the U.S. for 2025?
- What are the most popular regions and areas to buy property in the U.S.?
- Can New Zealanders purchase property in the United States?
- What is the step-by-step process for buying property in the United States?
- How can I get a mortgage in the United States?
- What are the pitfalls of buying property in the United States?
Welcome to the U.S.
The United States is the world’s third largest country by both area and population, and it plays a significant role in the global economy, politics, and culture.
Spanning over 9.8 million square kilometers (3.8 million square miles), the U.S. consists of 50 states, a federal district (Washington, D.C.), and several territories, including Puerto Rico, Guam, and the U.S. Virgin Islands.
The United States offers:
- vast urban landscapes, including megacities like New York and Los Angeles;
- rural regions featuring mountains, plains, and deserts;
- tropical islands such as Hawaii in the Pacific Ocean;
- coastal regions on both the Atlantic and Pacific Oceans.
As of 2025, the U.S. is home to approximately 336 million people, making it a major destination for global investors, business opportunities, and cultural exchange.
Population distribution across the United States by state
Why invest in the United States?
The United States remains one of the most attractive property investment destinations globally, thanks to its economic stability, legal transparency, and diverse real estate market.
From bustling metropolitan areas with high rental demand to scenic vacation properties and expansive rural estates, the U.S. offers a wide variety of options for foreign investors.
The country’s extensive infrastructure includes more than 4.3 million kilometers (2.7 million miles) of roadways, and diverse climate zones that range from subtropical Florida to the arid deserts of Arizona.
The U.S. is the world’s second most visited country after France, with more than 80 million international visitors annually. Tourism remains a crucial industry, contributing approximately 10.4% to GDP and influencing sectors such as hospitality and real estate.
In 2023, U.S. tourism revenues reached a record $300 billion, driven by strong recovery post-pandemic, growth in both domestic and international travel, and increased demand for short-term rental properties (U.S. Travel Association).
The U.S. real estate market, estimated at over $43 trillion, remains dynamic, with sectors like residential, commercial, and industrial real estate offering various opportunities for investors. The market is fueled by population growth, technological advancements, and migration trends.
What are the current market trends in the U.S. for 2025?
The U.S. property market in 2024 is showing signs of stabilization after the fluctuations observed in the previous years. Although mortgage rates remain elevated, home prices have started to level off in many regions, providing both challenges and opportunities for investors.
The rental market continues to be robust, particularly in major cities and growing suburban areas, where demand remains high. Investors are increasingly targeting markets with a blend of job growth, population influx, and attractive amenities, such as Austin, Nashville, and Orlando.
Sustainability and energy-efficient properties are also becoming key factors in the buying decision process, as both individual buyers and investors look to reduce energy costs and align with environmental goals. The integration of smart home technology and energy-saving features is driving demand for new builds and retrofitted properties.
Average cost of buying property in the United States
As of 2024, property prices in the U.S. vary widely depending on the location and property type. Coastal cities, tech hubs, and sought-after suburbs command premium prices, while secondary markets and rural areas offer more affordable options.
City / Area | Cost in NZD per m² |
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New York City (Manhattan) | 20,424.50 |
San Francisco | 16,872.40 |
Miami | 10,656.30 |
Austin | 8,525.01 |
Chicago | 7,104.17 |
These figures provide a snapshot of the current market, but prices can vary significantly based on the neighborhood, property type, and market dynamics in each area.
You can easily track the latest trends and price evolutions on our dedicated page:
What are the most popular regions and areas to buy property in the U.S.?
The United States offers an incredibly diverse range of regions, each with its own appeal, lifestyle, and real estate opportunities. Whether you’re looking for bustling city life, coastal charm, or serene countryside, there’s a perfect location for every type of investor and homebuyer.
Popular regions for investment and living
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New York City: As one of the world’s most iconic cities, New York offers a fast-paced urban lifestyle with world-class amenities, culture, and business opportunities. Property options range from luxury high-rise apartments in Manhattan to more affordable townhouses in outer boroughs like Queens and Brooklyn.
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California (Los Angeles and San Francisco): Known for its glamorous lifestyle, California’s major cities offer everything from beachfront properties to luxury estates in exclusive neighborhoods like Beverly Hills and Malibu. San Francisco, with its tech-driven economy, attracts both international buyers and investors with its mix of historic homes and modern condos.
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Florida (Miami and Orlando): Florida remains a top destination for foreign investors, retirees, and those seeking vacation homes. Miami offers a vibrant mix of cultures, beautiful beaches, and high-end condos, while Orlando’s family-friendly attractions and growing suburban areas provide solid rental income opportunities.
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Texas (Austin and Dallas): With its booming economy, lower taxes, and high quality of life, Texas continues to attract businesses and new residents. Austin, known for its tech scene and cultural offerings, is one of the hottest real estate markets in the U.S., while Dallas provides a more affordable mix of suburban homes and urban apartments.
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Arizona (Phoenix and Scottsdale): Arizona’s desert climate, affordable living costs, and rapid population growth make it a strong choice for both property investment and retirement. Phoenix offers diverse housing options from family homes in suburban developments to upscale estates in nearby Scottsdale.
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The Pacific Northwest (Seattle and Portland): For those interested in vibrant city life mixed with natural beauty, the Pacific Northwest is a compelling option. Seattle’s thriving tech industry and outdoor lifestyle attract young professionals, while Portland is known for its creative culture and eco-friendly housing options.
Can New Zealanders purchase property in the United States?
Yes, New Zealanders can easily purchase property in the United States.
The U.S. real estate market is highly accessible to international buyers, with no legal restrictions based on nationality regarding property ownership. New Zealanders investors and individuals can freely buy residential, commercial, or industrial properties without needing to be U.S. citizens or residents.
However, the process involves several key steps, including obtaining a U.S. tax identification number (ITIN), setting up a local bank account if financing is needed, and navigating the legal and tax implications. It’s highly recommended to work with a reputable real estate agent, attorney, and accountant who are familiar with assisting international buyers, including New Zealanders, in the U.S. market.
The EB-5 Visa Program
The EB-5 Immigrant Investor Program offers a pathway to U.S. residency for foreign investors and their families. To qualify, individuals must make a significant financial investment in a commercial enterprise in the United States, with at least $800,000 invested in a targeted employment area (TEA) or $1,050,000 in other areas.
The EB-5 Visa offers several benefits:
- Residency: It grants the investor, their spouse, and unmarried children under 21 the right to live, work, and study anywhere in the United States.
- Path to permanent residency and citizenship: After two years, if the investment meets job creation requirements, investors can apply for a Green Card. After holding permanent residency for five years, they may apply for U.S. citizenship.
The EB-5 program is a popular choice for those seeking residency in the U.S. while simultaneously investing in real estate or other commercial ventures. You can learn more about the EB-5 program on the official U.S. Citizenship and Immigration Services website.
What is the step-by-step process for buying property in the United States?
1. Obtain an ITIN (Individual Taxpayer Identification Number)
An ITIN (Individual Taxpayer Identification Number) is a tax processing number issued by the IRS for non-U.S. citizens who do not have a Social Security Number (SSN). Although it is not required for every property purchase, having an ITIN is necessary if you plan to open a U.S. bank account or apply for a mortgage, and for reporting rental income if you plan to rent out the property.
You can apply for an ITIN through the IRS using Form W-7, either from abroad or within the U.S. Required documents typically include:
- a valid passport (or certified copy);
- the completed W-7 form;
- a reason for requesting the ITIN (e.g., buying property or filing U.S. taxes).
2. Open a U.S. bank account
A U.S. bank account is essential for managing payments related to the property purchase, including deposits, purchase price, property taxes, and ongoing utility payments. While it’s possible to use an international account, having a local bank account simplifies transactions and reduces fees.
To open a U.S. bank account, you will typically need:
- your ITIN or SSN;
- passport and proof of identity;
- proof of address (either in the U.S. or your home country);
- potentially a reference from your home bank.
3. Start searching for properties
Explore online listings on Properstar to find properties for sale in your desired area. You can use advanced filters or even draw your preferred area on the map.
Consider hiring a real estate agent with experience working with international buyers. Agents can provide local market knowledge, assist with negotiations, and guide you through the purchasing process, which varies by state.
4. Find the right real estate agent
The right real estate agent can be invaluable when purchasing property in the United States, especially if you’re unfamiliar with the market or buying as a foreigner. They’ll provide critical local insights, assist in identifying properties that match your criteria, and guide you through the negotiation and legal process.
Here’s how to choose the best professional for your needs:
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Local expertise: Select agents with deep knowledge of the specific region or city where you’re looking to buy. They should be familiar with local property trends, market values, and neighborhood characteristics that align with your preferences and investment goals.
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Experience working with international buyers: Ensure the agent has experience assisting foreign clients. They’ll understand the unique challenges faced by non-residents, such as navigating U.S. legal requirements, managing currency exchanges, and securing financing.
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Credentials and reviews: Verify the agent’s credentials and reputation. In the U.S., agents should be licensed in the state where they operate. Look for agents affiliated with professional organizations like the National Association of Realtors (NAR) and check client reviews or testimonials to assess their reliability and service quality.
Properstar offers an agent search feature that connects you with vetted real estate professionals across the U.S. You can find local agents with the expertise and qualifications suited to your specific needs, ensuring a smooth and successful property purchase.
5. Conduct property viewings
Visit potential properties to assess their condition, location, and suitability. In the United States, property tours can be scheduled through your real estate agent, and virtual tours have become increasingly popular, especially for international buyers.
6. Legal checks and due diligence
Before finalizing a purchase, conduct thorough due diligence to ensure the property’s legal status and physical condition are as expected.
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Title search: A crucial step is performing a title search through a title company. This verifies that the seller has legal ownership and confirms there are no liens, disputes, or other encumbrances that could affect the sale.
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Zoning and land use compliance: Ensure the property complies with local zoning and land use regulations, especially if you plan to make changes to the property or use it for a specific purpose.
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Property inspections: In the U.S., a property inspection is typically done before the sale is finalized. It’s highly recommended to hire a certified home inspector to check for issues like structural damage, faulty wiring, or plumbing problems. Additional specialized inspections (e.g., for termites or radon) may be necessary depending on the property’s location.
7. Make an offer
With your real estate agent’s help, make an offer on the property. In the U.S., offers are usually presented in writing and include details such as the purchase price, contingencies (e.g., inspection or financing), and the proposed closing date. Your agent will guide you in negotiations with the seller, potentially leading to a counteroffer.
8. Sign the purchase agreement
Once your offer is accepted, you’ll sign a formal purchase agreement, which is a legally binding contract. This agreement outlines the terms and conditions of the sale, including contingencies and deadlines. At this stage, you will also submit an earnest money deposit, typically 1-3% of the purchase price, to show your commitment to the purchase.
9. Finalize mortgage arrangements (if applicable)
If financing your purchase, now is the time to lock in your mortgage rate and finalize the loan terms. Your lender will require an appraisal of the property to ensure its value aligns with the purchase price.
10. Complete the closing process
The final step is the closing, where ownership of the property is officially transferred. During closing, you will:
- Sign the deed, loan documents, and other required paperwork.
- Pay the remaining balance, including closing costs and any applicable taxes.
- Receive the keys and take possession of the property.
Closing costs in the U.S. typically range from 2-5% of the purchase price and may include title insurance, attorney fees, and recording fees.
11. Register the property
After closing, the title company will record the deed with the local county recorder’s office. This step legally transfers ownership and makes the transaction part of the public record.
12. Pay associated taxes and fees
In the U.S., property buyers are responsible for paying various taxes and fees, which may vary depending on the state and local regulations:
Common Taxes and Fees
Cost Component | Estimated Percentage or Amount |
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Property Transfer Tax (varies by state) | Typically 0.5% to 2% of the purchase price |
Title Insurance | 0.5% to 1% of the purchase price |
Recording Fees | $50 to $500, depending on the county |
Attorney Fees (if applicable) | Typically $500 to $2,000 |
In most U.S. states, closing costs are shared between the buyer and the seller, with the specifics negotiated as part of the purchase agreement.
13. Transfer utilities
Once the property is yours, make sure to transfer utilities like electricity, gas, water, and internet to your name. Your real estate agent can assist with this process, ensuring services are seamlessly continued after the purchase.
Given the complexities of the process, it’s advisable to work with a real estate attorney and an experienced agent who can guide you through the U.S. property purchasing process and protect your interests.
Valuable resources for official information
- U.S. Internal Revenue Service (IRS): Information on obtaining an ITIN and tax obligations for foreign property buyers.
- Local County Recorder’s Office: For property title registration and recording.
- U.S. Citizenship and Immigration Services (USCIS): For details on the EB-5 Visa Program and residency options.
- American Land Title Association (ALTA): Guidance on title insurance and the closing process.
How can I get a mortgage in the United States?
Many U.S. banks and financial institutions, including Wells Fargo, Chase, and Bank of America, offer mortgage options to foreign buyers. However, the terms and conditions may vary compared to those available to U.S. citizens or residents.
Interest rates for foreign buyers tend to be slightly higher due to perceived risks, but with the right documentation and financial profile, competitive rates are still attainable. As of 2024, typical interest rates for international buyers range between 6% and 8%, depending on the lender and the specifics of the loan.
How to obtain a mortgage
To apply for a mortgage as a non-resident in the U.S., you will generally need to provide the following documents:
- A valid passport or visa.
- An Individual Taxpayer Identification Number (ITIN) or Social Security Number (SSN).
- Proof of income (such as tax returns, payslips, or an employment contract).
- Recent bank statements (usually from the last 6 months).
- A credit report from your home country (some lenders require this).
- Proof of funds for the down payment and closing costs.
Once your documentation is ready, it’s advisable to seek mortgage pre-approval from several lenders. Pre-approval gives you a clear idea of the loan amount and interest rates you can expect and strengthens your position when making an offer.
Special considerations for non-residents
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Down payment requirements: Non-residents usually need a down payment of 30% to 50% of the property’s purchase price, depending on the lender. This is higher than the typical 20% required for U.S. residents.
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Higher interest rates: As a non-resident, you might face slightly higher interest rates compared to U.S. residents. Lenders factor in the potential challenges of managing an international borrower, which can increase perceived risk.
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Documentation and legal processes: Non-resident borrowers must work closely with a real estate attorney and a lender familiar with international clients. Mortgage approval may involve additional documentation and checks, including confirming the legal source of funds used for the down payment.
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Types of mortgages available: Foreign buyers are generally offered fixed-rate or adjustable-rate mortgages. Some lenders also offer specialized products for high-net-worth individuals looking to invest in U.S. real estate.
Using a mortgage broker
If you’re unsure which lender to choose or want to simplify the process, consider working with a mortgage broker who specializes in helping international buyers. Brokers can connect you with lenders offering favorable terms and help navigate the complexities of the U.S. mortgage market.
What are the pitfalls of buying property in the United States?
Purchasing property in the United States as a foreign buyer presents unique challenges that require careful consideration and preparation. Here are some common pitfalls to be aware of:
1. Navigating the U.S. legal and tax system
The U.S. legal system can be complex, particularly if you are unfamiliar with property laws, tax regulations, and local practices. Each state has its own set of rules governing real estate transactions, so the process can vary significantly depending on the property’s location.
Ensure you have an understanding of the following:
- Tax obligations: As a foreign buyer, you may be subject to specific taxes, such as the Foreign Investment in Real Property Tax Act (FIRPTA), which imposes withholding requirements on the sale of U.S. real estate by foreign owners.
- State-specific laws: Different states have varying regulations for closing costs, property taxes, and title insurance requirements, so thorough research or professional guidance is crucial.
2. Underestimating the true costs of buying property
Beyond the purchase price, buyers must account for various additional costs, including:
- Property taxes: Rates vary by state and local jurisdiction, often ranging between 0.5% and 2.5% of the property’s assessed value.
- Closing costs: These typically range from 2-5% of the purchase price and include fees for title insurance, legal services, inspections, and more.
- Maintenance and utilities: If the property will be used as a vacation home or rental, ongoing costs like property management fees, repairs, and utility bills can add up.
Proper budgeting is essential to avoid financial surprises.
3. Overlooking the importance of due diligence
Comprehensive property research and legal checks are critical to protecting your investment. Common issues to watch out for include:
- Title issues: Ensure there are no liens, disputes, or unresolved ownership claims that could jeopardize your purchase.
- Property condition: A thorough inspection is essential to identify potential problems such as structural damage, mold, or outdated systems. Skipping this step can lead to costly repairs later.
- Local market trends: Research the local market to understand the area’s property values, rental potential, and long-term growth prospects. Overpaying in a declining market can be a costly mistake.
4. Currency exchange and payment delays
Fluctuations in exchange rates can significantly impact your budget, especially if your home currency weakens against the U.S. dollar. Additionally, international wire transfers can sometimes cause delays, potentially jeopardizing time-sensitive transactions. Consider working with a currency exchange service that specializes in large international transfers to lock in favorable rates and minimize fees.
Frequently asked questions about property purchases in the United States
Yes, buying property in the U.S. in 2024 can be a worthwhile investment, especially in growing markets with strong job growth, population influx, and rental demand. However, high interest rates and regional price fluctuations mean that careful market research and financial planning are essential to ensure a sound investment.
Whether it’s better to rent or buy in the U.S. depends on your financial situation, long-term goals, and the local market. In high-demand areas with rapidly increasing home prices, buying can be a good investment if you plan to stay long-term. However, renting offers flexibility and may be more cost-effective in regions where housing costs are high or if your stay is short-term.
Foreigners can purchase any type of property in the U.S., including residential homes, commercial buildings, and land. There are no restrictions on property ownership based on nationality.
Yes, foreign property owners can rent out their U.S. property. However, you’ll need to consider property management services, tax obligations, and any state or local regulations regarding short-term or long-term rentals.
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