Can Indians Buy Property in USA? [Easy Guide]
Indians have always been international people, moving and traveling all around the world at the invitation of many countries looking for skilled and talented workers. In the US, Indian-Americans are the wealthiest ethnic community with a median household income above $150,000, which only goes to show how much they contribute to the overall US economy.
They work as doctors (around 9% of all physicians in the US are Indian citizens or of Indian descent), software developers, engineers, proprietors of gas stations, and many other types of valuable services. And, they buy US properties.
In this article, apart from answering the can Indian buy a property in USA question, we’ll also talk about how can Indians buy property in America, where are the major Indian communities located, as well as some key things Indians should consider before buying US property.
Let’s begin!
Can Indian Buy a Property in USA?
The answer to this question is — Yes, Indian citizens can buy property in the USA.
Because of how open and big the US real estate market is, all foreign nationals (including Indians) can purchase property in the US. In the period between 2022-2023, foreigners have spent more than 53,3 billion dollars purchasing property in the US. And, out of those $53 billion, Indian nationals account for around 7% of all foreign buyers and have collectively spent around $3,4 billion. This makes Indian citizens the 4th largest foreign buyers of US property.
The main issue that can affect Indian citizens who want to buy property in the US is how difficult the purchasing process is. For Indian nationals that have a valid US Visa or US citizenship, the process is easier, than if the opposite was the case. But ultimately, as an Indian citizen, you don’t need a Visa or US credit score to buy real estate in the States.
Where Do Indian Citizens Buy Property in the USA?
The 2023 statistics for foreign investment in US real estate show that the most popular state for Indian buyers is California. Around 20% of all Indian citizens that bought US property in 2023, did so in California. Other notable destinations for Indians purchasing US property include:
- Pennsylvania — 14% of Indian buyers
- Texas — 11% of Indian buyers
- Alaska — 9% of Indian buyers
- Illinois — 9% of Indian buyers
- North Carolina — 9% of Indian buyers
Major Indian Communities in the US
Every year, around 700,000 Indians fly to the US to work, vacation, or study. And, many Indians choose to permanently move to the US and make this great country their new home. Currently, there are around 4,4 million Indian citizens or people of Indian descent who live and work in the US. They represent around 1,4% of the US population and have established vibrant communities all around the country.
Some of the Indian communities in the US are in the following metropolitan areas:
- New York-Newark-Jersey City — There are more than 350,000 Indian citizens that live in this part of the US.
- San Francisco-Oakland-Berkeley — There are around 250,000 people of Indian origin living in this region.
- Chicago-Naperville-Elgin — 220,000 Indians live in this region of the US and represent around 4,4% of the overall population for this area.
- Dallas-Fort Worth-Arlington — 150,000 Indian citizens live in the Texas metro area. They collectively represent around 2% of the overall population of this region.
- Los Angeles-Long Beach-Anaheim — A bit over 110,000 Indians live in this part of the US.
- Atlanta-Sandy Springs-Alpharetta — Around 105,000 Indian nationals live in this region of the United States.
Why do Indians Buy Property in USA?
Indians are old-fashioned people who want to secure their money and their children’s future in the safest way possible. That’s why a lot of them own brick-and-mortar businesses (such as hotels, gas stations, liquor stores, and similar), and invest in physical assets (e.g. real estate). Buying real estate is one of the safest ways to protect money from inflation, and, as the prices of properties in the US go up, it’s also a great way to build generational wealth.
Here are some of the main reasons why Indian citizens buy property in the US.
Buy a Primary Residence
There are more than 4 million Indian nationals living, and a lot more that want to make a permanent move to the US. Because of that, it’s not unusual that many of them are looking to buy their primary residence in the USA. In fact, in 2023, around 65% of all Indian buyers bought a property with the intention to use it as their primary residence in the US.
Invest in Rental Property
A lot of Indian nationals are looking at the real estate numbers in the US, and based on them, are choosing to invest in US rental property. Around 19% of all Indian buyers in 2023, bought a property with an intention of renting it (a means to generate passive income).
Purchase a Vacation Home
Even if they are world-famous for being hard-working people, Indians, like everybody else, do go on vacation. And, some of them even buy vacation homes. In 2022, around 7% of all Indian buyers bought vacation property in the US.
Invest in a More Stable Currency
Trade gaps, budget deficits, economic fluctuations, inflation, and more, are some of the reasons why the Indian rupee is not the world’s most stable currency. On top of that, it has been continually deprecating against the US dollar. For those reasons, a lot of Indian nationals are purchasing real estate in the US as a way to invest in US dollars, but also to protect their money from inflation.
How Can Indian Buy a Property in USA?
There are two ways an Indian can buy property in the US:
- With a mortgage loan
- With an all-cash purchase
Out of the two, the first one is much more popular with the Indian nationals. Around 88% of all Indian buyers (in 2023), chose to finance their US property with a mortgage loan. The most popular housing loans amongst Indian citizens include:
- Foreign national mortgage loans
- DSCR loans
- Conventional mortgage loans
- Hard-money loans
The exact reasons why Indians prefer mortgage loans to all-cash purchases are varied and unique to each particular situation. However, there are some shared benefits of buying a home via a mortgage loan, including:
- Buyers can purchase properties at a higher price point — Not everybody has a lot of cash saved up and that they can easily access. If you choose to finance a property via mortgage loan you can buy real estate at a much higher price range. You’ll only need to have enough cash to cover the down payment.
- Certain tax benefits come with buying real estate with mortgage loans — The interest on mortgage loans is tax-deductible. This, in simple terms, means that the money you spend on paying the interest is the money you can deduct from your taxes.
- Can help build credit history — Repaying a mortgage loan and making timely payments on it, can have a positive impact on your credit score and history. This will help you get better terms on loans that you might choose to take in the future, among other things.
We can help you get the best deals on mortgage loans!
Key Things for Indians to Consider When Buying US Property
Here are some of the main things Indians should consider when buying property in the US:
Reason for Purchase
The reason why you’re looking to purchase US property as an Indian can have a big impact on the whole buying process. If you’re looking for a main residence, you’ll probably want to look for homes close to your work, family, etc. On the other hand, if you want to invest in rental property (residential or vacation) you’ll most likely look at the numbers and places where you can make the biggest return on your investment.
Financing Options
It’s possible for Indian nationals to get a US mortgage without having a US credit score and history, or even a Visa. If you don’t have enough cash on hand or simply want to reap all the tax benefits that come with mortgage loans, you should definitely consider one of the many financing options that are available to Indians purchasing property in the US.
US Taxes
Ensuring that taxes and other legal obligations are done according to US law is an important part of purchasing a home in this country. Whether you’re looking for a primary residence or are buying rental property, you need to ensure that you pay and file taxes on time and by US regulations. There are a couple of ways to do this, with the two main ones being:
- Do it yourself or DIY method — Learning about all the taxes you have to pay for purchasing and owning a property in the US requires a lot of research. On top of that, as a foreign national, you’ll also have to figure out what types of taxes non-citizens have to pay while involved in a process where a single mistake can cost you a lot. Now, we’re not saying this can’t be done, because it sure can. The CEO of NRI did it. But it took him a while, and it cost him a lot of money and time.
- Hire a company with international experience — There are various taxes and forms you have to consider and file as a non-citizen, that are different from those that US citizens have to do. Doing all of that correctly requires a lot of time, effort, and industry-specific knowledge that’s difficult to acquire. To save time, remove the risk of costly mistakes, and ultimately save money, you can hire a company that works with international buyers and has extensive experience in real estate and helping foreigners buy US properties.
How Can Indians Buy a Property in USA: Two Main Methods
There are two ways Indians can buy property in the US:
- Opening an LLC and using it to purchase a home
- Buying a property under their legal name
If you want to purchase a main residence, there’s no reason to open an LLC. You can buy the property under your legal name. But, if your goal is to buy a rental property in the US as an Indian, then you should definitely open an LLC. You’ll not only get certain tax benefits but will also protect yourself from liability and legal issues and will safeguard any other assets that you have. And, it’s also a very good way to protect your anonymity.
FAQ
Can I buy a house in USA from India?
Yes, in the US all foreign nationals (including Indians) can buy property. There are no laws or restrictions that prevent Indians from purchasing real estate property in the US.
Can Indians get a mortgage loan in the US?
Yes, Indians can apply for and get a mortgage loan in the US. To get a mortgage loan in the US, Indians don’t need to have a US credit score or history, or even a Visa. Those can make the process a bit easier and less time-consuming.
Wondering Can Indian Buy a Property in USA? NRI Can Help You!
NRI is a one-stop shop for all foreign nationals who want to buy US real estate, no matter if they live there or not. We work closely with real estate agents who specialize in dealing with international buyers and can help you find your ideal property in the US.
As a mortgage broker, we’ll help you get financing and find the best mortgage lenders to help you purchase US property. We’ll also make sure that all of the taxes and accompanying documentation are done in accordance with US law. If you want to learn what else we can do to aid you on your journey to owning property in the US, don’t hesitate to book a FREE call today.
