{"id":169304,"date":"2024-03-13T14:15:23","date_gmt":"2024-03-13T20:15:23","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=169304"},"modified":"2024-05-05T13:47:04","modified_gmt":"2024-05-05T19:47:04","slug":"real-estate-investors-living-overseas-can-scale-faster-in-the-us","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/real-estate-investors-living-overseas-can-scale-faster-in-the-us","title":{"rendered":"Living Overseas Can Help You Earn More Money in Real Estate Over the Long Run\u2014Here\u2019s How"},"content":{"rendered":"\n\n      <iframe loading=\"lazy\" frameborder=\"0\" height=\"200\" scrolling=\"no\" src=\"https:\/\/playlist.megaphone.fm\/?e=BIGPOC2671057724\" width=\"100%\"><\/iframe>\r\n  \n\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">The biggest hindrance to building a real estate portfolio that allows you to leave your job and become financially free is getting past the hurdle of covering your living expenses. Decreasing your costs by living overseas could be the most logical way to build a real estate portfolio in the U.S. quickly.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Why the Cost of Living in the U.S. Makes Saving So Difficult<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">According to the Bureau of Labor Statistics\u2019&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.bls.gov\/news.release\/cesan.nr0.htm\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Consumer Expenditure Survey<\/span><\/a><span data-preserver-spaces=\"true\">, the average household earned $94,003 in 2022 before taxes and spent $72,967 (just over $6,000\/month) on total expenses. Of that number, $24,298 accounted for accommodation, which amounted to around $2,000\/month on rent or a mortgage.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">With the cost of living increasing, earning almost $73,000 a year in&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/how-to-earn-passive-income-in-2024\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">passive income<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;so you can contemplate quitting your job is no small feat. With 33% of most people&#8217;s total expenses in the U.S. dedicated to living expenses, it is difficult to save enough to invest in real estate securely.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">For older Americans in their 50s and 60s, investing in real estate to retire might seem beyond their reach. In 2023, the median 401(k) balance for Americans in their<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.cnbc.com\/2023\/08\/21\/how-much-money-americans-in-their-50s-have-in-their-401ks.html\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">&nbsp;50s was $57,000<\/span><\/a><span data-preserver-spaces=\"true\">. Financial advisors&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.troweprice.com\/personal-investing\/resources\/insights\/youre-age-35-50-or-60-how-much-should-you-have-by-now.html\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">T. Rowe Price<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;recommends 65-year-olds should save 7.5% to 13.5% of their annual gross income. With adults living longer than ever, that still creates the fear of outliving your savings, let alone passing on an inheritance to your children.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Remote Working Has Created Options<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">The spiraling cost of living in the U.S. has coincided with the increase in&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/the-real-world-impacts-on-remote-work-and-what-it-did-for-investors\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">remote work<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;after the pandemic. Although estimates vary, BLS found that more than&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.bls.gov\/news.release\/brs1.htm\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">27% of the U.S. workforce was working remotely<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;at least part-time as of August and September 2022. However, some academic surveys have suggested that the number is closer to 50%.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">To quote author Tim Ferris of the best-selling&nbsp;<\/span><em><span data-preserver-spaces=\"true\">Four-Hour Work Week<\/span><\/em><span data-preserver-spaces=\"true\">, the way to financial freedom is to &#8220;live in pesos and earn in dollars.&#8221;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">When it comes to&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/building-scaling-real-estate-portfolio\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">scaling a real estate portfolio<\/span><\/a><span data-preserver-spaces=\"true\">, working overseas, where the cost of income is a fraction of that of the U.S.\u2014aside from moving back in with your parents or&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/real-estate-investing\/house-hacking-strategy\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">house hacking<\/span><\/a><span data-preserver-spaces=\"true\">\u2014 is a rock-solid way of keeping more of what you earn to invest in real estate. Also, living in a foreign country will keep your&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/what-is-debt-to-income-ratio-dti\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">debt-to-income ratio<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;low, making borrowing easier for your investments.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">The Cost of Living Overseas<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">According to&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/internationalliving.com\/the-cheapest-places-in-the-world-to-live\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">International Living<\/span><\/a><span data-preserver-spaces=\"true\">, some of the most popular, cheapest places for couples to live a comfortable middle-class lifestyle in a safe neighborhood, accounting for transportation, food, quality healthcare, and other expenses, are in these countries.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Mexico<\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\"><strong>Overall monthly cost of living:<\/strong> $2,000<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">It&#8217;s entirely possible to spend much less than $2,000\/month. American expat M&#8217;kali-Hashiki Nln, who lives in a furnished two-bedroom apartment in Oaxaca, Mexico, says, &#8220;I spend $800 to $900 per month\u2026 I could go cheaper if I lived in a different place, walked more, and took fewer taxis.&#8221;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Ecuador<\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\"><strong>Overall monthly cost of living:<\/strong> $1,900<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Living well on the outskirts of a main city is possible for far less than $1,900 a month. A former Bay Area IT worker, Aaron Williamson, still works for a U.S. company, earning an American salary. &#8220;I knew I would save at least 30% from my North American burn rate without any budget restrictions,&#8221; he told International Living.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Malaysia<\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\"><strong>Overall monthly cost of living:<\/strong> $2,000<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Living and working in Asia is extremely affordable if you do not need to be in a Western time zone. Once you get out of the main cities, it&#8217;s possible to live in a 1,000-square-foot, three-bedroom apartment with sea views that can cost as little as $300 per month. There is excellent transportation, and the food is delicious. There are also bucket airlines to the rest of Asia, allowing you to access the continent&#8217;s culture.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Thailand<\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\"><strong>Overall monthly cost of living:<\/strong> $2,000-$2,500<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Thailand is a perennial favorite if you want to live in paradise with a large international community. A one-bedroom resort-style luxury villa on an isolated beach at Koh Samui will cost you $830\/month. Move to Chiang Mai, and rents for a clean, quality apartment can drop to $250\/month.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Colombia<\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\"><strong>Overall monthly cost of living:<\/strong> $2,000<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Colombia has come a long way from its violent past. It has become a hub for digital nomads with quality healthcare and cosmopolitan attractions in cities such as Medellin, Bogota, and Cartagena. The cost of living drops once you go to smaller cities such as&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/internationalliving.com\/countries\/colombia\/manizales-colombia\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Manizales<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;and&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/internationalliving.com\/countries\/colombia\/pereira-colombia\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Pereira<\/span><\/a><span data-preserver-spaces=\"true\">. Expect to pay around $700 per month to rent an upscale apartment in Bogota and $500 in&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/internationalliving.com\/countries\/colombia\/cali-colombia\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Cali<\/span><\/a><span data-preserver-spaces=\"true\">, Pereira, and&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/internationalliving.com\/countries\/colombia\/bucaramanga-colombia\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Bucaramanga<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">How One Expat Plans to Use His Digital Nomad Lifestyle to Jump-Start an Airbnb Business<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Faisal Qureshi was living in the Bay Area when the pandemic hit. He was working for a start-up, paying $4,000\/month for a small apartment, using his entire income on living expenses, and unable to envision ever being able to afford a place of his own.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">&#8220;When everyone started working remotely, I didn&#8217;t need to be told twice to leave the Bay Area,&#8221; Faisal says. He moved to Mexico City, where he could still be close enough to the U.S. to fly to cities for business while living cheaply.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">&#8220;I lived in a huge luxury apartment in Mexico City for about 50%-60% of what I was paying in California,&#8221; Faisal says. &#8220;So I was able to start saving while still living well. When I left the start-up to join another U.S. company, I no longer had the geographical constraints of needing to be close to the U.S., so I&#8217;m currently living in Buenos Aires. Initially, my goal was to save up to buy a primary residence in the U.S., possibly in Miami, but living overseas, for a fraction of what it costs in the U.S. while having really good experiences, becomes addictive.\u201d<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">\u201cSo now my goal has changed,\u201d Faisal adds. \u201cI want to buy a property in the States that I can Airbnb, giving me additional income and a place to stay when I visit. I&#8217;ll have all the tax benefits of owning real estate, appreciation, and a home when needed.\u201d<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Moves to Make Before Moving Overseas<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">If you&#8217;re looking into living overseas to save and invest in the U.S., you&#8217;ll need to do some legwork beforehand. Besides looking for accommodation in your desired new city, you&#8217;ll have to investigate healthcare.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Fortunately, unlike in the U.S., it&#8217;s possible to get quality healthcare for an affordable price, even if you are an expat. Equally, there are multiple affordable&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.investopedia.com\/health-insurance-for-expats-7113406\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">insurance options<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;to cover you in case of any unforeseen circumstances.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">International travel may not make sense if you travel with children and want to educate your kids in a private international school. Be prepared to join the ranks of multinational executives and their families and pay a much&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/world-schools.com\/the-best-international-schools-in-central-and-south-america\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">higher price than a U.S. state school<\/span><\/a><span data-preserver-spaces=\"true\">. However, traveling with babies and toddlers before school age could save you a lot of&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.money.co.uk\/loans\/cost-of-childcare-report\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">childcare costs<\/span><\/a><span data-preserver-spaces=\"true\">, enabling you to buy a primary residence or investment property before the cost of raising kids kicks in.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Final Thoughts<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">If you can work remotely and have wanderlust, working overseas to save money and see the world could be the perfect recipe for building a real estate portfolio. Whether you want to save for one or two homes or love extending overseas living to keep accruing property in the U.S. without sacrificing your lifestyle, consider taking a flight to set your investing alight.<\/span><\/p>\n\n\n\n    \n  <div id=\"visibility-group-block_14f14bd57f17db79d6c542bd024e01c6\" class=\"visibility-group alignwide  hidden\">\n        \n\n<div id=\"hero-block_e2ccc98b9ec33654550d3876124a0489\" class=\"first:mt-0 hero-block py-4  alignwide   has-background has-slate-200-background-color has-text-color has-theme-gold-color\">\n    <div\n        class=\"gap-10 lg:gap-20 flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 lg:w-1\/2 \">\n            <main class=\"py-4\">\n                \n\n<p class=\"has-slate-800-color has-text-color has-large-font-size wp-block-paragraph\" style=\"font-style:normal;font-weight:800\">Find the Right Agent, Close the Best Deal<\/p>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-slate-900-color has-text-color wp-block-paragraph\" style=\"font-size:18px\">Step #1: Use Agent Finder to match with top <em><strong>investor-friendly<\/strong><\/em> real estate agents to help you find, analyze, and close your next deal.<\/p>\n\n\n\n<div id=button-custom-event-block_c22dc33ecf0a29e348391fdcc82aeba9 class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/agent\/match\" x-on:click=\"window.analytics.track(&#039;Blog Block | B2C Marketplace Agent Finder&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/real-estate-investors-living-overseas-can-scale-faster-in-the-us&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Find an Agent<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n                <div class=\"lg:w-1\/2 first:mt-0 relative h-full lg:flex lg:items-center\">\n            <img decoding=\"async\" class=\"object-cover w-full relative z-20 my-0  rounded-md hidden lg:block\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2021\/08\/Marketplace-Blog-Blocks-Agent-v3.png\" alt=\"investor friendly real estate agent\" title=\"\">\n        <\/div>\n            <\/div>\n<\/div>\n\n  <\/div>\n  \n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n    \n  <div id=\"visibility-group-block_64dd31c79f00f\" class=\"visibility-group  \">\n        \n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div id=\"hero-block_64dd2875dba9d\" class=\"first:mt-0 hero-block py-4    has-background has-slate-100-background-color has-text-color has-theme-slate-color\">\n    <div\n        class=\" flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 w-full \">\n            <main class=\"py-4\">\n                \n\n<h3 class=\"wp-block-heading my-0 tracking-tight font-extrabold has-theme-slate-dark-color has-text-color has-large-font-size\">Join the community<\/h3>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-theme-slate-color has-text-color wp-block-paragraph\" style=\"font-size:16px;font-style:normal;font-weight:400\">Ready to succeed in real estate investing? Create a free BiggerPockets account to learn about investment strategies; ask questions and get answers from our community of +2 million members; connect with investor-friendly agents; and so much more. <\/p>\n\n\n\n<div id=button-custom-event-block_64dd2888dba9e class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/signup\" x-on:click=\"window.analytics.track(&#039;Blog Block | Acquisition | Free Membership Signup&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/real-estate-investors-living-overseas-can-scale-faster-in-the-us&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Sign Up<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n            <\/div>\n<\/div>\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n  <\/div>\n  <\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The cost of living has been rising steadily over the last several decades, especially with inflationary pressures over the past couple of years. At this rate, is it easier to invest in U.S. real estate from overseas? The answer might surprise you.<\/p>\n","protected":false},"author":613725,"featured_media":169308,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7389,7119],"tags":[],"class_list":["post-169304","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-analysis","category-biggerpockets-daily"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/169304","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/613725"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=169304"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/169304\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/169308"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=169304"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=169304"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=169304"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}