A finished basement can significantly increase your home’s value, especially if you turn it into a rental apartment. This will bring in extra cash and can even pay for the cost of finishing it.
However, deciding how to finish your basement is a personal decision. Here are some tips to help you weigh the options:
1. Additional Living Space
Whether you need extra room for the family or have been dreaming of creating a home theater, a finished basement adds living space. This can increase a house’s overall square footage and therefore boost its value.
In fact, according to Remodeling Magazine’s 2022 Remodeling Impact Report, converting a basement into living space ranks as one of the top-four projects for recouping your investment. This is higher than kitchen remodeling or bathroom renovations, and even hardwood floor refinishing.
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Another basement-renovation project that can add to a home’s value is converting it into a rental unit or income-generating space. As long as local zoning laws and regulations are followed, this can be an excellent way to generate income and recoup some of the money that was spent on renovation costs.
Adding a home office can also be an attractive selling point to potential buyers, especially since working from home has become increasingly common. In addition to a desk and chair, consider adding a bookshelf or entertainment center to make the room more functional.
3. Home Office
If you have a home-based business, finishing your basement into a work space can give you a tax deduction. The IRS defines a home office as a space you use regularly and exclusively for your business. This can include a spare bedroom, an entire basement or even your garage.
You can also transform your basement into a guest room to accommodate visiting family and friends. This can save you money on a hotel stay and increase the frequency of visits from loved ones.
If you are comfortable welcoming a tenant into your home, turning your basement into an apartment can be another great source of revenue. Renting your extra living space can provide you with a steady monthly income that can help you reduce your mortgage payments, pay for other home improvement projects or even take that tropical vacation you’ve been dreaming of. You may be able to get a cash-out refinance or home equity line of credit that will allow you to fund your basement remodeling project without draining your savings account or putting the expense on a high-interest credit card.
4. Game Room
When Saturday evenings come around and your family wants to take a break from their online video games, you can have them step down to the basement for some fun with pool, ping pong, or darts. Then, you can have a game room that’s not only a home entertainment center, but also a way to increase your revenue.
Design the space with the entire family in mind to ensure that it’s something everyone will want to spend time in. Including enough room for table games, seating areas where you can relax with family and friends, and even a bar to stock your favorite drinks.
Brighten up the space with alluring colors to create the mood you want for your game room. Use dark hues for a dramatic effect, or opt for warm and inviting colors like red to make your gaming room feel cozy. Add storage solutions to keep everything neat and organized. If you’re planning to sell your home in the future, a well-designed finished basement will be much more appealing to potential buyers.
Remember, adding rooms to your basement requires professional electrical and plumbing help. Sites like https://www.fixitrightplumbing.com.au/blocked-drains-melbourne/ can help with your basement renovations.