Homeowners are well advised to not only protect their homes for their families but also enhance them to increase the potential income or resale value. At first you might be concerned about the costs involved to undertake a major renovation that could include expanding your basement area by lowering your foundation by underpinning. At the City Wide Group, we are always impressed by the tremendous usability and equity value added to the houses we underpin.
Our experience in Toronto and the GTA backs up the claims that foundation underpinning and finishing the basement regularly achieves returns on investment of 50% to 75% in added house equity. On each basement lowering and finishing project of $100,000 an expected increase in appraised completed home value of $150,000 to $200,000 can be achieved depending on the quality of finishes. At the same time, you have increased your useful space by 33% to 50% depending on your individual property. In addition, if you have decided that you will rent out new lowered and renovated basement space, you have the monthly income to pay off your costs and later, provide a regular investment return.
Underpinning vs Buying a New Home and Moving
To increase your living space by 33% to 50% by moving to a new home would require a significant increase in your new home purchase price not to mention moving away from your neighbourhood. The costs of purchasing a new home and moving can be high. Surveys, land transfer taxes, movers, utility deposits, agent and lawyers’ fees, all add up. That long list does not take into account the value of your time arranging and packing or the emotional impact of leaving a familiar locale and friends.
Underpinning Value: A Case Study
Recently the City Wide Group undertook an underpinning project at a home in the Beaches valued at $795,000. The homeowners spent $60,000 lowering the basement and an additional $40,000 on interior finishing work for a total of $100,000 in renovation costs. A new valuation after the completion of the projectrecorded a remarkable $1,000,000+ value in home equity. Quality professionals like the City Wide Group must be contracted to ensure comparable returns for your home underpinning project. Essential elements for value-added appreciation include: high‐quality, easy maintenance, environmentally conscious products and timeless designs. City Wide Group brings all of these elements to all of our projects.
***** Valuations will vary (+/-) based on the overall condition of your existing property and the potential range of improved values in your individual neighbourhood.