Buying Beyond Borders: The What Where and Why of Americans Buying Property Abroad

You know, for all the talk we have about how much international money flows *into* U.S. real estate—and it’s a massive $56 billion, which we’ve covered quite a bit!—we sometimes forget that the global real estate market is a two-way street. As an international buyer representative, I deal mostly with Foreigners buying real estate in the U.S. But my U.S. clients are also looking for opportunities outside our borders, and it’s a fascinating trend that’s worth exploring.

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The Global Mindset: U.S. Clients Investing Overseas

It’s true, the U.S. is a magnet for international capital. But what about Americans looking out? The National Association of Realtors® 2025 International Transactions in U.S. Residential Real Estate report gives us a peek into this.

It reveals that about one in ten (11%) of REALTORS® surveyed had a U.S. client who purchased residential property outside the U.S. over the past year. In my own business, I’ve certainly noticed this growing curiosity among U.S. clients wanting to explore m0re diverse markets, whether for lifestyle, investment, or a bit of both.

Related: These Foreigners Bought The Most U.S. Real Estate in 2025

Why Go Global? Motivations for Buying Abroad

So, what’s driving these U.S. clients to look beyond our borders? The reasons are pretty diverse, but some clear patterns emerge. From my conversations, it often comes down to finding that perfect blend of personal enjoyment and smart financial planning. Here’s a breakdown of the main drivers:

For many, that dream vacation home that also generates rental income is a big draw. Others are purely focused on investment, seeking out new markets for growth. And for some, it’s about finding a new place to call home, perhaps for retirement or a lifestyle change, or even staying close to family living abroad. Diversification, as always, is a smart play for any serious investor.

I certainly think the explosion in the short term rental business model with websites like AirBnB and VRBO is playing a big part. Americans can now own a vacation home abroad, and rent it out on a short term basis when they’re not using it. In some cases, this extra income might even be sufficient to cover the cost of ownership – even mortgage payments.

Related: Where And Why Foreigners Are Selling Their U.S. Properties

Where Are They Buying? Top Destinations

When my U.S. clients decide to go global, where are they usually setting their sights? The data confirms what I often see in my practice: a mix of close neighbors and popular cultural hubs.

Mexico leading the pack makes perfect sense – it’s close, vibrant, and offers a wide range of properties. Canada is another obvious choice due to proximity and shared culture. The appeal of places like the Dominican Republic, Colombia, and Italy speaks to both tourism appeal and potentially attractive real estate markets.

Related: Why These Foreigners Struggled to Buy U.S. Real Estate

What Kind of Properties? Price and Type

One thing that often surprises people is the price point. The median price of foreign residential property purchased by U.S. clients was $150,000. Compare that to the median price of all existing-home sales in the U.S. ($300,000) during the same period, and you can see why some might look abroad for more affordable options or greater value.

As for what they’re buying, the typical foreign residential property was a detached single-family home (60%). And similar to how many international investors buy in the U.S., a good chunk of U.S. clients (49%) purchased foreign property with all-cash. This suggests a desire for straightforward transactions and strong financial positions among these global buyers.

The globalization of financing has really opened up the wider global market for real estate investors. My foreign clients can now get pretty reasonable terms on a U.S. mortgage for a rental property. Likewise, U.S. citizens can now buy with long-term financing in other countries all over the world.

Related: These Are the U.S. Properties Foreigners Are Buying in 2025

My Takeaways for U.S. Global Investors

From my perspective, seeing U.S. clients engage in the global market is exciting. I’ve been investing in the U.S. market as a foreigner since 2016, so I have somewhat pf a personal understanding of the benefits of investing aboard. My advice, just as it would be for international investors coming to the U.S., is to find local expertise.

Navigating foreign markets comes with its own set of unique challenges – from legal frameworks and tax implications to cultural nuances and financing. Having a knowledgeable international real estate professional on your side, whether you’re buying here or abroad, is absolutely critical. It ensures a smoother process and helps you make the most informed decisions.

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Frequently Asked Questions (FAQs)

How common is it for U.S. residents to purchase real estate outside the U.S.?

Based on the latest report, about one in ten (11%) REALTORS® had a U.S. client who purchased residential property outside the U.S. over the past year. While not as dominant as inbound international investment, it shows a growing trend of Americans diversifying their property portfolios globally.

What are the primary reasons U.S. clients buy property in foreign countries?

The most common reason for U.S. clients to purchase property outside the U.S. is for a vacation home or rental property (31%), indicating a desire for leisure or passive income. Other significant motivations include pure investment (21%), seeking a primary residence (14%), family reasons (13%), and portfolio diversification (11%).

Which countries are the most popular destinations for U.S. clients buying abroad?

The top five countries where U.S. clients purchased foreign residential property are Mexico (28%), Canada (11%), the Dominican Republic (7%), Colombia (6%), and Italy (5%). Proximity, cultural ties, established expat communities, and attractive property markets likely contribute to the popularity of these destinations.

How does the price of foreign property bought by U.S. clients compare to U.S. home prices?

The median price of foreign residential property purchased by U.S. clients was $150,000. This is significantly lower than the median price of all existing-home sales in the U.S. ($300,000) during the same period, suggesting that U.S. buyers often find more affordable property options or prioritize different types of investments when looking abroad.