Investing in the United States versus investing overseas—that’s what I want to dive into today. As you may know, I’m currently traveling full-time with my family, and we’re traveling internationally. A question I often get from people who know I’m in the real estate investing space is whether I’m picking up investment properties in these different countries. Today, I want to share the pros and cons of investing in the United States versus internationally and explain why I’m continuing to invest in the U.S. You’ll see what makes real estate investing in the U.S. unique, what challenges you might face abroad, and why the U.S. remains one of the best places to build and scale a real estate business.
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Investing in the United States versus investing overseas—that’s what I’d love for us to dive into today. As you may know, I am currently traveling full-time with my family, and we’re traveling internationally. A question I often get asked by those who know I’m in the real estate investing space is if I’m picking up investment properties in these different countries. Today, I’d like to share the pros and cons of investing in the United States versus what is available internationally and honestly tell you why I continue to invest in the U.S. If you’re thinking about investing internationally, this will give you some insight into the differences. And if you’re investing in the U.S., you’ll hear what I appreciate about it, which may help you feel even more confident about your investments.
One of the major advantages of investing in the United States is the easy access to tools and supplies for property management and cleaning. Since leaving the U.S. eight months ago, I am now in my second rental ever that has a vacuum. I’ve stayed in about 10 to 12 different Airbnb short-term rentals, and only two had a vacuum. In many places, vacuums just aren’t common. Cleaners rely on a broom and dustpan, often using old, worn-out tools. The availability of high-powered vacuums, professional-grade cleaning tools, and short-term rental supplies in the U.S. is something I now appreciate even more. In the United States, you can buy almost anything you need for your rental property. Amazon Prime, Walmart delivery, and other services make it incredibly easy to get supplies delivered straight to your doorstep, which isn’t always the case in other countries.
Another major benefit of investing in the U.S. is the investor-friendly mortgage options. In many countries, mortgages either don’t exist or require much larger down payments, have higher interest rates, and offer shorter loan terms. In the U.S., investors can secure down payments as low as 15–20% for investment properties and as little as 0% down for VA loans or 3.5% for FHA loans. This accessibility allows investors to leverage their money, build equity, and maximize returns. Additionally, tools like HELOCs and cash-out refinancing make it easier to access equity and reinvest in additional properties, which isn’t always an option in other countries.
Home and land ownership security is another significant factor. In the U.S., property rights are well-protected, and once you buy a property, it is legally yours. In some countries, foreigners cannot legally own land, or ownership is heavily restricted. In the U.S., foreign investors can own property just like U.S. citizens. Although obtaining a mortgage may be more challenging for foreign investors, those bringing cash can invest without ownership limitations. Additionally, title insurance and legal protections further reduce risks, ensuring that investors have security in their real estate investments.
The U.S. is also one of the best countries for building and scaling a real estate business due to its efficiency, speed, and security. The systems in place allow investors to grow their portfolios more quickly and effectively compared to many other markets. The predictable and transparent real estate bureaucracy in the U.S. also plays a role in making investing easier. While dealing with permits, regulations, and zoning laws may be frustrating, they are still far more manageable and clear-cut than in many other countries.
However, real estate investing in the U.S. does come with challenges. One of the main pain points is the high cost of labor. Service costs have skyrocketed, and while technology could help reduce the need for expensive labor, many industries have been slow to adopt automation. For example, self-checkout has taken over two decades to become more widespread in grocery stores, despite the cost savings it provides. In other countries, labor is often cheaper, making it easier to hire help. In places where labor costs are comparable to the U.S., businesses are more willing to embrace technology to cut costs and improve efficiency.
Another major challenge is rising insurance costs. Natural disasters have driven up homeowners’ insurance rates, making it harder for investors to make their numbers work. Insurance costs have risen at a faster pace than rental income, creating additional financial pressure for real estate investors.
Labor shortages also pose difficulties. Finding reliable service providers, such as contractors, cleaners, and maintenance workers, has become increasingly challenging. The cultural emphasis on college education over trade skills has contributed to a shortage of skilled laborers, making it more expensive and time-consuming to hire help. As a result, investors face higher costs and potential delays in maintaining their properties.
Lastly, property taxes have been on the rise. Many investors who have owned properties for years are seeing their property taxes increase significantly due to rising home values. Similar to insurance costs, these rising expenses have outpaced rental market growth, making it harder for investors to achieve strong cash flow.
Despite these challenges, the benefits of investing in the U.S. still outweigh the cons for me. The accessibility, financing options, legal protections, and efficiency of the U.S. real estate market make it one of the best places to build wealth through real estate. I’d love to hear your thoughts—what do you think about investing in the United States versus abroad? Leave a comment below and let’s discuss!