Many property owners are guilty of leaving these dark, cave-like spaces unused and in a terrible state. What people don’t realise is that basements can add tremendous value to a property, especially if it’s properly converted.
Space is Money
Square footage pretty much directly translates into value. The more habitable space you have in a property, the more it is worth. Many property owners see basements and cellars either as a waste of space, however a handful see them as the golden opportunity that they are. A nice property with a nice basement, is a lot nicer than a nice property with a dank hole underneath it. Developing a basement is therefore a good investment, from which you should typically see a return of over 100%. London will see even greater returns.
What you want to do depends on your budget, and what kind of property you own. It also depends on what your family or living circumstances are. A family may want to convert a basement into a playroom for the children or a spare bedroom. The possibilities are however endless, with some people building swimming pools in their basements, or using them for sound-proofed music studios.
If you’re a landlord, you won’t be able to use the area for rental space, primarily because it’s underground. You could however bump up the rent, especially if you’ve invested in converting a basement into a liveable and useful space. If you’re looking for income from it, don’t go too niche, make it habitable and comfortable – don’t go building swimming pools as you won’t see a return on your investment.
It is unlikely that you’ll be able to have any tenants in your house if you’re developing it, neither should you be living in it, especially if you are digging further under the house. You should make sure that you acquire property insurance when developing, and let your insurance company know what’s going on, as not doing so could invalidate your policy.