The decision to invest in a property with a basement, obviously comes down to the potential, and relative value of the basement itself. In other words, can that basement make or save more money than you might make by investing the same amount elsewhere? It is not always an easy calculation, and the numbers change depending on where and when you make that calculation.
Firstly, geography matters. In less crowded parts of the country, basements are less common. There is of course more external space which is useful for fuel and/or growing fresh food, reducing the value of cold storage cellars.
In addition, previously there was not the knowledge or technology to create and design basements that were damp-proof, well-lit and able to be heated.
In London space is more precious than ever. As a result, there are many basement companies in London with the expertise to design healthy basements that people enjoy living in. The logic for modern basements is therefore clear, but the circumstances of each investor are different. Here are some of the factors that should feature in your decision.
The cost of construction
Existing infrastructure and underlying geology are unique to each property. Fortunately, specialist basement companies in London, will happily provide quotations for free.
The purpose of the property makes a big difference to the numbers. Most owners fall into one of three categories: landlords, businesses and residents.
Business operators have to ask if basement development will disrupt their existing trade more than relocation. The answer depends on the business and the property, but often it is no. Relocation often entails a cessation of trade, lost customers and lost employees. Providing the basement development is well planned, business can continue operating and, because the purpose is non-residential, the space created is often cheaper.
Basements lacking windows and exits are unsuitable for bedrooms, so landlords tend to dismiss them when assessing rental value. However, this depends on the particular house and the clientele the area attracts. Basement conversions are suitable for kitchens, bathrooms and lounges, and each one that you relocate, frees a room above. In improving and up and coming boroughs, providing a property with a spa, sauna, gym or games room can simply shift its rental value into another tier – (boroughs tipped to improve include Camden, Kentish Town, Stratford and Tufnell Park).
For owner-occupiers, the main question is the ratio of property prices to building costs. In recent decades London prices have consistently outstripped the inflation of construction costs. This is the very reason why basement companies in London have become the best in the world. Therefore, the relative value of basements will continue to rise.
Basement companies in London can help
The true cost of buying a new home is often underestimated. Even when fees, taxes and removals are paid for, the costs of home décor, refurnishing and commuting costs could go on forever. For families with children and those who simply love their neighbourhood, investing in the property you already own will always make more sense.