Renovating your basement is one of the most efficient ways to increase the property value of your home. Basements have endless opportunities for use, they can be transformed into a suite, family room, playroom, or gym, however, they often sit as neglected storage areas.
Home renovations, specifically ones that increase the amount of living space such as basement suites, add significant value to your property. Typically, basement renovations result in a 70% payback rate. When looking to renovate your unfinished basement, it’s important to consult a trusted and reliable team of experts. The team at Craftsman Contracting are well versed in both the design and construction of home renovations, to best suit your home’s needs.
While paying some extra TLC to your basement could increase your home’s value, you may be wondering how this type of renovation will affect your property taxes. While you may experience a slight increase in your total property tax payments, this does not mean you’re going to lose money on a basement renovation, in fact it’s quite the opposite. Basement renovations increase the value of your home and often pay for themselves in the long run.
Basement Renovations and Property Taxes
When renovating your basement, you’ll likely need to acquire the correct permits before making any structural, plumbing, or electrical alterations. These changes can be substantial but will result in a significant increase to the property value of your home. Basement renovations add to the number of habitable rooms you have available to live in and sell in the future. But how does an increase property value lead to higher property taxes?
1. Higher Value
Adding value to your home does result in an increase of property taxes, however, the difference is rarely substantial. The value of your home can increase by up to 70 per cent of the cost to remodel. While your property taxes will not be equal to the added value, you may see a slight increase compared to your current tax amount.
Property taxes depend on the area you live in. Tax rates vary between country, province, and municipality as the property value is influenced by certain living factors. Where you’re located, such as city versus rural living, proximity to certain school districts, etc. will all impact the total cost of your property tax.
3. Assessing Property Value
A simple way to gauge how much your property taxes will be is to multiply the tax rate by your assessed property value. For basement renovations in Vancouver BC, there are online calculators available to assess your property value. To gain a thorough assessment of your home’s value, an assessor will scrutinize your property. The value is typically in line with current market prices or fair market values. They will often compare your property to sale records in the area. In some cases, they’ll inspect your home’s interior to further assess the value.
How Basement Renovations Add Property Value
The increased value depends on the type of renovation you have done to your basement. You can increase the value of your home by renovating your basement to include the following:
By adding an extra room to your home, you’re building a space of higher value. If you have visitors often or are planning to expand your family, a spare room is a great asset. Adapting your basement into a guest bedroom adds an extra space of privacy and draws in a larger group of potential buyers.
You also have the option of transforming your basement into a full suite, equipped with a private entrance, bathroom, and more to meet living standards. This is an opportunity for an increased revenue stream should you choose to rent it out.
2. Media or Playroom
If you have a growing family, having a spare room solely designed for entertainment is a must. Not only does this minimize disturbance and noise to the rest of the home, but it’s also a designated room for your kids. They can establish their own space and develop a sense of responsibility. Basements are a great place to install a projector. One: they’re usually full of empty wall space. Two: the low lighting is optimal for optimal.
3. Personal Gym
Transforming your basement into your own gym is a great way to add value to your home. Basements are a great space to store heavy equipment and have minimal noise transfer between other rooms in the house. As a highly health-conscious society, a well-equipped home gym is a huge draw to potential buyers.
Renovating Your Basement
If you’re looking to add value to your property and day-to-day life, renovating your basement is a great place to start. Our experts at Craftsman Contracting can assist with the design and construction of your basement renovation to optimize your space and increase value. With our years of experience and knowledge, we know how to best utilize your excess space. We’ll transform your unfinished basement into a destination spot on time and within budget. Reach out for a free quote today!