When the time comes to renovate or add an addition to your residence your first thought and primary motivation is likely to add space or expand the functionality of your home. When it comes time to sell, your priority is to add value to your home. A basement renovation is a great way to add functional living space to your home at a reasonable cost. A basement renovation can be the addition of a re suite, a play area for the kids, an entertainment area, or even just an expanded organised storage space. No matter what you choose, a basement renovation is a great investment.
RETURN ON INVESTMENT
In Canada the average basement renovation is among the most economically beneficent investments you can make. According to the Appraisal Institute of Canada, which has developed a guide to providing homeowners with advice and guidance on maintaining or increasing the value of their homes, the payback on renovations is measured in the three ways: the value of increasing the selling price of your home; the value of enjoying the renovated space; and the value of maintaining the worth of the home. Basement renovations are linked to a 50-75% return on investment. For example, if you spend $50,000 on putting in a rental suite you can increase the value of your home by as much as $40,000. And if you are converting the space into a rental suite you can recoup the remainder of the renovation cost from collecting rent within 4 years. If you can spare the space, adding a rental suite in your basement is an even better investment. Not only will it significantly increase your property value, it will also provide a steady stream of additional household income.
RENOVATION TACTICS
Renovating a basement can include finishing, fixing or replacing walls, ceilings, carpets, flooring, coverings, doors, windows, light fixtures, and baseboards. In addition, replacing the trim around doors and windows that may be letting in drafts will give you the opportunity to save on your energy bills, as will upgrading your heating system with a more modern and energy-efficient model. Another improvement is installing new flooring to improve the look and value of your home.
CAREFUL CONSIDERATION
Consider your neighbourhood and the expectations of buyers in the area when planning your renovation project. An over-improvement to your home may only be partially recognised or appreciated by a prospective buyer. For example, conducting a basement renovation for $60,000 in an area where homes sell for around $200,000 may not offer you a significant financial return on your investment. However, a basement renovation is definitely a ‘worth’-while investment if you live in a high-demand neighbourhood with smaller homes; the creation and expanded functionality of extra space will make your home very attractive to potential buyers. So whatever you make of it, a finished basement will add tremendous value, both in resale and in the value it will add to your family’s life. In fact, the Appraisal Institute of Canada ranks a basement renovation at the top of its top 5 renovations with the highest enjoyment value.
A basement renovation will transform your house in the short term and pay dividends if the time comes to resell your home in the future. Accent Renovations is your multi-award-winning go-to professional renovator specialising in basement, kitchen, bathroom, interior and exterior renovations for residential and commercial clients. We offer unparalleled service and an unwavering dedication to an eco-friendly and sustainable way of doing business.