Return on Investment - Finished Basement

[shane_c]

Is it a worthwhile investment (i.e. make back more than it'd cost) to finish the basement. If we were to sell right now we'd likely ask $360K. A place two doors down from us just sold for $397K. It's the same size but has a finished basement and a garage. Any idea what we might be able to ask if just the basement was done? Or if we just had a garage?

[4X4]

$20K tops unless your basement is HUGE and/or walkout

edit** actually, this requires more info. Is your house zoned R2? If so, putting a suite downstairs would make it pretty attractive to investors. IF your house is a bilevel or bungalow, even if it's not zoned R2 you could put an 'illegal' suite down there.

[Rathji]

If you are paying someone else to finish it, it might not be alot of extra on the return. If you do it yourself( and can do a good job) then it will net you a hella lot more for your work.

[4X4]

Originally Posted by fotze

I think Garage is a better return and probably a lot less work.

###

As long as the garage is large, it'll always be worth more than a developed basement. Alot of people prefer undeveloped basement because they can do it themselves, or to their liking. A garage is always a garage. Very few people prefer NO garage.

[Bobblehead]

I have a friend who does renos, and he has always said you develop a basement because you want to develop it. You won't get all your money back out. You will make your place easier to sell, but you won't earn any money on the reno.

Perhaps with the boom of the past couple years that has changed, but I doubt it.

[photon]

Typically a basement does not get you much of a return unless you can do a great job yourself (reducing the cost significantly). Though there can be times and neighbourhoods where it does, a good real estate agent should be able to tell you for a particular area. And getting a good return for doing it yourself has more to do with the cost of trades than the real estate prices.

I agree, a garage is easier to do and will add more than it cost.

[SeeGeeWhy]

What do you mean by finishing a basement?

I find it hard to believe that if you are adding a bathroom and a bedroom to your house that you wouldn't see money back on that... just look at the difference in price between a 2 bedroom, 1 bath house and a 3 bedroom, 2 bath house in Calgary in ANY community.

[MacDougalbry]

They had an article in CREN a year back about this, basically they said that a basement development only pays off if you are adding a family room to a home that otherwise doesn't have a family room in it.

Having looked at numerous rental houses in this city in the past, there are a lot of homes out there with really awful basements. Garbage carpet, mildew smells, low ceilings, shoddy work, cheap materials, and wood panelling are common. I think homes like those throw off the statistics.

Another factor is that, in Calgary, MLS listings don't count finished basements in their square footage, possibly not in the room counts either.

But I think the CREN article is still right, the basement has to be finished in a way that adds value (and enjoyment) to the use of the house. Not many people need 5 bedrooms and a giant play room these days, but an exercise room and a home theatre room might be more appealing... but it has to be nicely finished. People don't want to spend time in a space that feels like a dungeon.

None of this matters, though, if you stop viewing your home as an investment that is going to belong to someone else some day and start viewing it as YOUR home for your enjoyment... If you think the basement development is worthwhile, then what does it matter what others think.

[shane_c]

So basically it would make more sense to put up a garage. I know you can get the kits and do it yourself. So say if it cost me approx $7000 to get the garage pad and put up a garage, roughly what kind of return would this yield? $10K, 15K, 20K?

[Incinerator]

Originally Posted by SeeGeeWhy

What do you mean by finishing a basement?

I find it hard to believe that if you are adding a bathroom and a bedroom to your house that you wouldn't see money back on that... just look at the difference in price between a 2 bedroom, 1 bath house and a 3 bedroom, 2 bath house in Calgary in ANY community.

Yup, if you just drywall the thing and call it a rec room you won't recover anything in terms of costs. But if you have a full bathroom down there it's a different story. A Bedroom is anything that has a closet and a window large enough to escape in case of fire. Most modern houses built within the last 10 years will have a 3 piece bath roughed in already, but some builders are cheap and won't include it in the standard features. Also it is important to note that just because the guy down the street asked for $397K doesn't mean you can ask AND get that price. This is especially true with single family housing unlike condominiums where in most cases everything can be priced within a close range due to similar specs, exterior condition, amenities and location. PM me if you have anymore questions.

[shane_c]

Originally Posted by Incinerator

Also it is important to note that just because the guy down the street asked for $397K doesn't mean you can ask AND get that price. This is especially true with single family housing unlike condominiums where in most cases everything can be priced within a close range due to similar specs, exterior condition, amenities and location. PM me if you have anymore questions.

No but it gives a rough idea. That seems to be what they're going for when they are the same size, same area, with both the garage and finished basement. And they don't sit on the market too long either at that price.

[ken0042]

Originally Posted by shane_c

So say if it cost me approx $7000 to get the garage pad and put up a garage

I think you may be a little conservative there. $7000 will get you a garage package, but not a pad. A 22X22 garage will need 7 cubic metres of concrete (at 6" thick- code). My last batch of concrete last summer cost me $190/m3, so @ $200 this year you are looking at $1400 just for the concrete. Never mind cribbing materials, rebar, etc. And that assumes you'll pour it yourself.

The $4000 package from Totem doesn't give you everything you need either. A few extras:
- Siding and drainspouts $900
- Electrical $500
- Garage door opener $300

Then add tools you need to buy- I've budgeted about $500 for tools for my garage project, and I already own a selection of hammers, drills, saws, etc.

[photon]

Originally Posted by shane_c

So basically it would make more sense to put up a garage. I know you can get the kits and do it yourself. So say if it cost me approx $7000 to get the garage pad and put up a garage, roughly what kind of return would this yield? $10K, 15K, 20K?

Maybe $15-20k, but a real estate agent would proably be able to give you a better idea for your particular area.

[Tron_fdc]

Originally Posted by ken0042

I think you may be a little conservative there. $7000 will get you a garage package, but not a pad. A 22X22 garage will need 7 cubic metres of concrete (at 6" thick- code). My last batch of concrete last summer cost me $190/m3, so @ $200 this year you are looking at $1400 just for the concrete. Never mind cribbing materials, rebar, etc. And that assumes you'll pour it yourself.

The $4000 package from Totem doesn't give you everything you need either. A few extras:
- Siding and drainspouts $900
- Electrical $500
- Garage door opener $300

Then add tools you need to buy- I've budgeted about $500 for tools for my garage project, and I already own a selection of hammers, drills, saws, etc.

So around $10k for a 2 car garage? I'm thinking of doing one, and the pad is already down.

[ken0042]

I would say $10K is a good number to work with for a 2 car garage with the pad already down; maybe even a little high.

I just look at how much my costs were last year for the foundation for mine; and how much they went past the budget. I was counting on $2000-2500 and it was closer to $4000. (I went with the foundation because my back yard has a bit of a slope to it.)

Speaking of which, in case anybody needs any plywood for concrete forms, PM me. (It's all 1X8s and 3X8s.)

[redforever]

Originally Posted by shane_c

Is it a worthwhile investment (i.e. make back more than it'd cost) to finish the basement. If we were to sell right now we'd likely ask $360K. A place two doors down from us just sold for $397K. It's the same size but has a finished basement and a garage. Any idea what we might be able to ask if just the basement was done? Or if we just had a garage?

garage before basement. Many would prefer the basement unfinished so they can do it how they want.

[automaton 3]

Originally Posted by ken0042

I think you may be a little conservative there. $7000 will get you a garage package, but not a pad. A 22X22 garage will need 7 cubic metres of concrete (at 6" thick- code). My last batch of concrete last summer cost me $190/m3, so @ $200 this year you are looking at $1400 just for the concrete. Never mind cribbing materials, rebar, etc. And that assumes you'll pour it yourself.

min 6" at the footings...but I believe the pad itself can be 4"

[ken0042]

Originally Posted by automaton 3

min 6" at the footings...but I believe the pad itself can be 4"

In the middle of the PDF from the city's website:
150 mm (min) Concrete Slab
150 mm (min) Compacted Gravel

Yeah, I was thinking 4 inches was going to be enough. Then all of a sudden I was told I had to have at least 6 inches.

Que Fotze's responce in 3....2....1.....

[automaton 3]

^^^^ Interesting!

In both Lethbridge and Edmonton the slab can be 4"...I wonder why the difference in Calgary...?