Owning a property is a great long-term investment. In order for your home to continue to appreciate in value, you will need to make improvements and Renovations from time to time. One renovation that all people should consider is renovating their basement into a usable and livable space. A finished basement can increase your home value a number of different ways.
Increase Usable Square Footage
The first way that finishing your basement can increase the value of your home is by increasing the usable square footage of your property. If you have a standard 2,000 square foot house, there is a good chance you have up to 1,000 square feet in your basement. If you decide to improve all or a part of your basement, you could immediately increase the usable and livable square footage of your home. This will appeal to many homebuyers that are looking for an extra living space.
Add New Bathroom or Bedroom
Another way that you can improve the value of your home by renovating your basement is by adding a new bathroom or bedroom. If you have space and budget for it, adding a new full bathroom or bedroom could lead to a significant value in your home. This is because adding a new bedroom or bathroom will now allow your home to be compared to other properties with more bedrooms or bathrooms. It will also increase the functional use of the property, which will appeal to buyers.
Create Income Property
The third way that finishing your basement can add value to your home is by converting it into a separate income property. When you are going through the process of finishing your basement, you could also consider adding a kitchen, bathroom, and bedroom. If you also have a separate exit and entrance, this space could easily be converted into a rental unit. Having the ability to rent this space out, will add a considerable amount of potential cash flow and value to your property.