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danska_gw

Basement - return on investment

danska
17 years ago

Hi everyone,

I am planning to finish my basement in my town home, but am slightly concerned whether the return on investment will be positive. It is likely that I won't be staying in this house for more than 2 years.

The basement is 900 SF and we are planning to finish about 600 sf with bath and shower. The plan is to make one big playroom for pool table and entertainment center.

The town home is 2200sf without the basement but only has 2 bedrooms + a loft. That is why we thought this additional space would be an added value for out-of-town visitors or entertainment, and ofcourse for resell purposes.

I can do the entire project for $13K with a nice ceramic tile floor and whatever else goes into finishing a basement.

I recently bought the house for $410K in a great location and I am wondering, based on anyones experience whether this sounds like a good idea or have a general guideline.

Besides what I have described I know there are a ton of other parameters that could be factored in, like the market conditions at the point of selling, which is obviously impossible to predict.

Looking forward to hear from you!

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