With Canadians spending more time at home, opportunities for home improvements are presenting themselves unlike ever before. Remote work and virtual learning have encouraged homeowners to turn unused space into dedicated work areas and offices, while gym closures and winter weather have made home fitness zones a top priority. With more time together and less time apart, we’re all looking for a refuge, whether that’s a spa-like bathroom to unwind or a small corner of the bedroom for meditation. Basement renovations have also grown in popularity and necessity, as a way for families to gain more living space amid a highly competitive Greater Toronto Area real estate market.
Benefits of a Basement Renovation
A basement is a great solution for homeowners looking to maximize unused square footage in their homes, while increasing their property value and even creating additional income:
Additional Living Space
Depending on the size and layout of a house, a basement renovation can nearly double the amount of living space in a home. This type of renovation is also less expensive than adding an addition because it makes use of square footage that already exists in the home. What you choose to use the basement for is up to your needs and lifestyle. You can add more bedrooms for a growing family, a space for aging parents or in-laws, a home theatre, rec room, an additional bathroom, a magazine-worthy laundry room, a playroom for the kids, a home office or additional storage space. The possibilities are endless!
Increased Property Value
According to the Appraisal Institute of Canada, a finished basement is a top-five renovation offering the highest enjoyment factor for homeowners, next to landscaping, garage additions, sunrooms and decks/fences. But, a finished basement will also enhance the resale value of your home. Not only will the additional living space and square footage appeal to buyers, but it will increase the selling price of your property. Depending on the scale of your renovation, a finished basement can recoup approximately 70 percent of its renovation costs if you decide to sell the home.
Generate Income
If you have an unfinished basement and don’t need the extra living space for yourself, a basement rental suite can add significant value to your home through monthly rental income and as a long-term investment when you choose to sell. Even if potential buyers don’t want to be landlords, a basement income property is an enticing prospect as an in-law suite, space for out-of-town guests or a space for grown children living at home.
The Region of Peel offers the My Home Second Unit Renovation Program, which provides up to a maximum of $20,000 by way of a forgivable loan to eligible homeowners who need to upgrade and legalize their existing second unit. Homeowners can receive an additional $10,000 to homeowners who rent to a tenant referred by the Region of Peel.
Your Real Estate Connection
Completing a basement renovation is a great way to get more usability and longevity from your home, while increasing its value and enjoyment.
If you need advice to make the most of your return on investment, contact me, Deborah Clerk, Real Estate Sales Representative, ASA with Keller Williams Real Estate Associates in Mississauga, Ontario, to deliver the professional and knowledgeable guidance you need, as it relates to your home and local real estate market.
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