Basement Finishing: Creating high style on the lower level

For most prospective buyers, those first few steps into a circa 1970s or 1980s finished basement can be a shocking and scary experience. For most, it's difficult to see past the passé decor of orange shag carpet, wood panelling and dated fireplace; all very typical to the era of these rec rooms.

Those of us who belong to a certain generation, however, can remember when these retro spaces were a big stepup. Finished basements were a relatively new concept. Until the late '50s, basements were typically concrete bunkers that housed mom's laundry and dad's workbench. Throw in a dartboard and - presto - there was your recreation.

It's hardly surprising that the first family on the block to get wall-to-wall carpeting and a Formica bar was the envy of the neighbourhood.

Oh, how tastes have changed. It's a good lesson to keep in mind when finishing your own basement. As with all design projects, there are two basic approaches: One is to do things the way you really want them, throwing any resale considerations to the wind; the other is to temper your choices to better stand the test of time. There is merit in both, but it's crucial to understand which path you're going down and to recognize that there is a chance you may not entirely recoup your investment.

Don't stress. It's safe to assume that finishing a space will bump up your property value. In terms of what you can expect back with a basement renovation, the Appraisal Institute of Canada quotes a range of 50 to 75 per cent.

In addition to the increase in property value, finishing a basement can drastically expand your livable space. Take a bungalow for example; it will actually double in size with a finished basement. If your living quarters are feeling a little cramped, it may be worth some serious consideration.

Conventional uses of a finished basement include family rooms, entertaining spaces, children's playrooms and exercise areas. Some families may require a fourth bedroom or guest room, which can be a great use of space.

A gifted interior designer can help you combine several functions with a natural flow and direct your lighting choices (so important) with a trained eye. Even when the budget is tight, consider springing for a two-hour consultation: An investment this sizable should really have some professional input.

One trend making huge strides now is the home theatre, complete with projection television, an elaborate sound system and tiered cinema-style seating.

Now this is a great example of a renovation choice that should be made for the joy it will bring today, as opposed to the money it will bring in later. While it can be costly to install, it will ultimately appeal to a more narrow audience - no pun intended. (The Appraisal Institute estimates investment recovery for a home theatre between 25 and 50 per cent).

Buyers of pre-construction homes face the same issue but ask themselves a very different question: Should they finish the basement right away or delay? There are decided benefits to having your builder take charge. It's more convenient, it's covered by warranty and the cost can be included in your mortgage.

On the other hand, your mortgage may simply not stretch that far. Some buyers choose a middle road, paying the builder to insulate and drywall the exterior walls, with roughed-in electrical and plumbing. This certainly reduces the hassle come renovation time.

Owners of older homes often have to contend with issues of moisture, which may require dampproofing, lot regrading and/or addressing drainage issues; the last thing you want is water damage on your beautiful new drywall or flooring.

Where older, shallow basements used to be non-contenders for finishing, it's recently become more common to "dig down" in order to provide comfortable head clearance. This can yield incredible results - but the process is most definitely messy and pricey and not for the faint of heart.

It's not the kind of project to engage in if you're planning on moving in a few years; rather, it's a commitment to make when you've found your "forever house." For some families, this extra space means the difference between reluctantly leaving the home of their dreams and putting down roots for years to come.