Buying Australian property from overseas introduces risks that are often underestimated. This guide outlines common mistakes made by first time Australian expat investors living in the United States and highlights why a disciplined, fundamentals-driven approach matters.

1. Buying the frenzy

In 2026, strong media narratives and aggressive promotion by selling agents and some buyers agents have driven demand in certain suburbs without solid long-term fundamentals. First time expat investors can be drawn into fast moving markets based on hype rather than evidence. This often results in overpaying for assets in locations with limited owner occupier demand, weak infrastructure support, or constrained long term growth drivers.

2. Misunderstanding how U.S. income is assessed by Australian lenders

Many first-time expat investors assume their U.S. income will be treated the same as Australian income or rely on online calculators that do not account for expat lending rules. In reality, foreign income is often discounted (by around 20%, as a good guide), additional buffers are applied, and lender policies often vary significantly. This misunderstanding can lead to unrealistic budgets, delayed approvals, or purchases falling over late in the process.

3. Overpaying due to limited local market insight

Without on-the-ground market intel, expats can struggle to accurately assess fair value. This increases the risk of paying above market price, particularly in competitive conditions where comparable sales and local demand drivers are not properly analysed.

4. Prioritising yield over long-term fundamentals

High headline yields can be appealing, especially when managing holding costs from overseas. However, assets with weak owner occupier demand, limited infrastructure support, or poor long-term growth drivers often underperform.

5. Buying properties with narrow tenant appeal

Properties that suit only a small segment of the rental market can experience longer vacancies and higher turnover. Broad tenant appeal is especially important when managing an investment from overseas.

6. Underestimating ongoing holding costs

Rates, insurance, property management, maintenance, and vacancy periods are often underestimated. Small miscalculations can materially impact net cashflow over time. Rates, insurance, property management, maintenance, and vacancy periods are often underestimated. Small miscalculations can materially impact net cashflow over time. Our team prepares a detailed financial cashflow model for every purchase to ensure holding costs and assumptions are fully understood upfront.

7. Relying solely on selling agents or developers

Selling agents and developers represent the vendor, not the buyer. Information provided may be incomplete or overly optimistic without independent verification.

8. Proceeding before finance is fully confirmed

Conditional approvals are not guarantees. While a pre-approval is essential for any purchase, changes in valuation, lender policy, or income assessment can still derail a transaction if finance is not fully approved and secured.

9. Failing to stress test the investment

Many first-time investors do not model scenarios such as interest rate increases, vacancies, or income changes. Stress testing helps ensure the investment remains viable under different conditions.

10. Not getting the right advice and support

Buying property from the United States can be logistically and emotionally draining without the right support. Time zone differences, coordinating inspections, managing finance, legal documentation, and making decisions remotely can quickly become overwhelming. Without experienced professionals managing the process locally, delays, miscommunication, and missed details can compound, leading to missed calls during the night, failed contracts, lost deposits, unnecessary costs, and a highly stressful buying experience.