Should we finish our basement?

[NewJeffCT]

Our house is 1 year old now and has a walk-out basement that is all set up for finishing - 9 foot ceiling with a steel beam running across it, 3 windows, a door & rough plumbing.

The house has 3 official bedrooms overall, with an open upstairs office/den that can fairly easily be converted into a bedroom by just putting up a door and then putting a door on the open area where the closet is supposed to be.

The thing is, the area we live in is about halfway between where my wife works in Mass and where I work in Hartford, CT. However, my wife does not like her job and has been interviewing for jobs in the Hartford area. If she can find one in the Hartford area, we may eventually move to a less "exurbian" location & probably into a more convenient suburb of Hartford. (Right now, it takes 10-12 minutes to get to the grocery store and 20 minutes to a movie theater.)

So, my question is, is it worth it to finish the basement & put in an extra bedroom & bathroom down there if we move in a year? I know the answer is most likely "no", but we know a person that could finish the basement & do a quality job pretty cheaply (friend of the family & all). I do know that in a residential family area like where we live now, a house that is advertised as having 4 bedrooms and 3.5 baths is probably an easier sell than one with only 3 bedrooms & 2.5 baths. We have maybe 750 square feet total that we'd want finish, which would be a 12' or 13' by 16' bedroom with a 6'x8' bathroom and then a "rec room" area in the leftover space.

[livetohike]

1. Without doing a formal cost/benefit analysis

:-), I say only spend the money to fix up the basement if you feel you will stay there.

I wouldn't fix it up for another person - they may have different ideas of how they want it. You can use that money for your next down payment.

Just my 2 cents worth.

[NewJeffCT]

2. we should do a formal analysis

just to see what the added selling value of an extra bedroom would be vs the cost of finishing the basement...

[livetohike]

3. That's what I would do

We were going to remodel the kitchen as we plan to move next year and thought it would add to the value. But I think we will just do a little sprucing up instead.

[On the Road]

4. It Could be Worth the Cost in Increased Value

especially if you make it a separate apartement with bathroom and possible a stovetop. A lot of people look for houses with in-law spaces.

And if you don't move, consider renting the basement out. That can more than pay for the renovation cost itself, and can really help out financially. For some reason, a lot of people only consider it if they're in financial difficulty.

In my experience, it's usually better to avoid making decisions of what might happen in a year unless it's really a sure thing. At least for me.

[NewJeffCT]

5. good idea!

renting out the basement is a decent idea...

[On the Road]

6. Glad You Like the Idea --

my girlfriend starting renting out the extra bedroom in her old apartment and paid for over half the rent that way.

She moved to Baltimore, bought a townhouse, is renting out the basement and extra bedroom, and pays virtually no mortgage once those are taken into account.

To top that off, she bought the townhouse two doors down from her new place, is renting it by the room to four Indian programmers, and clearing about $1000 a month.

There is a shortage of single-room occupancy in many places. It's worth taking advantage of. As long as you stick with educated singles (craigslist is a good source), you can make a lot of money with a little effort and meet some new people to boot.