There are many reasons to join the Foreign Service in service to our nation's ideals abroad.
- You may have joined because you have a history of government service in your family tree.
- You might have joined your brothers and sisters in the service to see the world, achieve a personal goal, or just to uphold the values of our great nation.
Whatever your reason for deciding to join the Foreign Service, it's an adventurous and often challenging job—especially to promote peace!Part of the nature of being in the Foreign Service means you'll likely spend a great deal of your assignment abroad—even overseas. As a diplomat, you may find yourself and your family far from home.
If this type of assignment is in your future, your focus aside from serving our country should be on your family—and, if time permits, enjoying your trip abroad and the many cultural rewards that come with it. Trying to manage an empty home overseas is stressful at best—and a potential target for squatters and thieves at worst. This is one reason why renting out your home with the help of Northern Virginia property management is a great option for Foreign Service members!
Let's see why renting out your Northern Virginia home during an overseas assignment is the considered best option by many real estate investors.
A quick note: This article is not intended as legal or tax advice. However, it can be a great introduction to why you may want to start investing in Northern Virginia real estate! Once you decide you're ready to get started, get in touch with the property management experts at RentSimple!
Time Management Is the Key to Your Success
If we've heard it once, then we've heard it a thousand times: Time is money! If you are spending too much time searching for residents to fill your vacancy or a plumber to fix a broken pipe in the middle of winter, you could be wasting money at the same time. How can you avoid endless hours of scheduling appointments between your residents and vendors—especially in different timezones? That's easy.
What Property Management Can Do for You
From marketing and maintenance to providing tax guidance and documentation, specially-trained property managers handle every aspect of your investment property. Here are some important thoughts to consider before passing by the benefits of Northern Virginia property management.
You can earn long-term passive real estate income even while you're abroad! This is a huge benefit to property owners who would otherwise have an empty expense every month. If you're overseas, this feat isn't as easy as it sounds, but a property manager can help you get there.
If you choose to rent out your home while you're away, you'll need to protect your property with the right business entity and insurance. Joining the Foreign Service is a significant decision; so is starting a rental business! What type of business entity should you select—and what are the costs associated with that choice? A property manager can guide your choices and handle the day-to-day management of your property while you're serving our nation abroad.
- Think of your investment income as part of your future plans after your time in the Foreign Service.
- You might find that you enjoy the additional income that comes with an investment property!
- If you decide to add more properties, you'd already have a steady stream of income to get started.
If you decide to keep growing, add turnkey properties to your portfolio to make money faster!
- Turnkey equates to move-in ready, with a great person already renting your great space managed by a property management partner.
- This allows you to hit the ground running on a perfectly-picked investment property without needing any additional work to get started.
What About Your Taxes?
Beyond the care of your property and the ease of growth, there are multiple tax advantages for choosing to invest with Northern Virginia property management! Here are a few to consider.
Depreciation While Appreciating
Depreciation is the reduction in the value of your investment property as it matures due to the wear and tear of a property over time, even if your property might be increasing in value due to the hot market we have here in Northern Virginia!
Property appreciation essentially refers to how the value of an investment property increases over time. As more people move to Northern Virginia with the planned expansions of Amazon and Microsoft coming to our area, jobs are coming with it! This means your home will only continue to gain value over time.
It is important to note that while there are different types of depreciation, land does not depreciate.
Additional Tax Incentives
There is a slew of additional tax deductions you can take advantage of as a real estate investor! Here are just a few:
- Loan interest: It's likely you took out a mortgage to pay for your home. Did you purchase another home or refinance? You can write off a portion of the interest you have paid on your loan.
- Property taxes: Just about everyone pays property taxes. Luckily, they are tax-deductible. Plus, if you're careful and work with a property manager, you can usually find a way to roll these into the price of your rental!
- Maintenance and repairs: This one might be surprising to potential investors! You may deduct the costs associated with general home maintenance items. Think about the costs of painting bright colored rooms or pest control treatments! However, itemization is key to keeping these costs trackable and organized. Save your itemized bills for the end of the year, or let your property management partner handle the paperwork.
- Property management: Beyond all the other benefits that property management provides a homeowner, our services are also a tax deduction!
Renting Is a Vital Part of the Economy!
Northern Virginia is often thought of as a recession-proof region due to our government's influence on industries from defense contracting and consulting. While the global pandemic essentially halted the world, we have seen a couple of positive reactions to combat this virus; lower interest rates on loans, for example. This allows for more citizens to purchase or sell property amidst troubling times, allowing you to grow at a savings and positively contribute to the economy!
- One of the greatest benefits of investing in real estate is you are not limited to one investment property.
- You can purchase as many as your capital will allow! This means you can generate multiple income streams.
- It's easy to see why renting while you're on an overseas assignment can benefit you even after your term is over.
Your time in the Foreign Service should be spent helping further the ideals of our nation and to bring the light of peace and prosperity to wherever you call home during your assignment. You shouldn't have to worry about your empty home while you're away! Look after your family, and leave the business of looking after your great spaces to RentSimple!