The United States has been a top choice for foreigners planning to invest in real estate. Mexicans are among the foreign nationals looking to invest in American real estate. Buying American property is a dream of many Mexicans, given that the United States is considered the most powerful country and has a developed economy.
If you are a Mexican aiming to buy a house in the US, then this guide might interest you. If you read until the end, you will learn about the US real estate market and how to maneuver it.
Can a Mexican Purchase Property in the US?
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Yes! The American government allows foreigners, including Mexicans, to acquire property in the United States as long as certain requirements are met. What’s more, a Mexican may secure a mortgage without having a credit history in the US.
How Much Have Mexicans Invested in American Real Estate?
Data from the National Association of Realtors (NAR) shows that Mexicans injected $12.4 billion into American real estate from April 2020 to March 2023. The data also indicated that citizens of Mexico have been buying an average of 17,500 American units every year since 2010.
Where Do Mexicans Purchase Houses in the United States?
Texas has been the most preferred location for Mexican real estate investors. Other areas include Arizona, Colorado, California, and North Carolina. Notably, 72% of Mexican nationals buy American property in small towns or suburban areas.
How Do Mexican Nationals Intend to Use Their American Property?
The US lifestyle has made millions of Mexican nationals relocate to the United States. NAR’s data shows that 55% of the Mexicans buy American property to use it as their primary residence. Meanwhile, 45% use it as their second home or investment.
Mexico vs. the US: House Price Comparison
House prices in the United States are considerably higher than those in Mexico. Data on Zillow.com shows that the average house price in the United States is roughly $330,000. In Mexico, the average house price is about $70,000, according to information on Statista.com.
Can a Mexican Secure Mortgage in the United States?
As mentioned, Mexicans looking to finance their house purchases using a mortgage can do so in the United States. However, it seems like most Mexican nationals are not aware of this option, considering that 43% of property purchases by Mexicans were financed with cash in 2023.
Tax Implications for Mexican Buyers of American Property
As a Mexican, When buying a US property for your primary residence, you only pay property tax, just like Americans. However, in case you are acquiring a property for the purposes of investment, there are a few things you should know about. For example, the US government will impose a tax on the income generated from your property.
Any foreigner who makes their American property available for rent must pay a withholding tax of 30%. Additionally, the Internal Revenue Service requires Mexicans and other foreigners who have a property for rent in the United States to file a 1040NR tax return in a timely manner. Note that you must also hold either an Individual Taxpayer Identification Number or a Social Security Number to secure tax treaty benefits.
How to Buy an American Property as a Mexican
The process of acquiring property in the United States as a Mexican national is simple. Just follow these steps:
Step 1: Identify Your Ideal American Property
You can easily find your preferred US house on property listing websites or through a real estate agent.
Step 2: Investigate the Seller and Make Your Initial Offer
Once you identify the house you’d want to purchase, hire a real estate agent to investigate the home seller to check if they are genuine. After confirming that the seller is legitimate, you can send your first offer to start the negotiation process.
Step 3: Inspect the property and Sign a Sale Contract
Upon reaching an agreement on the price, you can organize a visit to the property to check if it meets your expectations. If satisfied, you can proceed to sign a sale contract, which legally requires you to pay the property price.
Step 4: Make Payment and Move in
After paying the seller, their lawyer will submit the sale agreement to relevant government authorities to generate a new deed. Once you have a deed bearing your name, you can occupy your American property.