Walkout Basement Is Today’s Best Investment

Why is a walkout basement the best investment in uncertain conditions? In this post, we explain the market trends, external factors, and future trends. Based on this, you can make a final decision whether this investment will work for you.

Many predicted a massive drop in sales and prices as a result of the pandemic. Surprisingly, the property market didn’t experience downward fluctuations. Instead, the real estate prices increased by a stunning 9.36%. To make it more transparent, this hasn’t happened since 2016. In 2020 a total of 551,392 units got listed and sold.

This can be explained by the primary economy rule of supply and demand. The demand for homes is rising, while the supply remains the same. This means that the active listings will get sold quickly. When more people are looking to buy a home, and fewer people sell their homes, real estate prices rapidly grow.

The rising price trends will continue in 2021, according to the Canadian Real Estate Association. New real estate listings will remain limited, while more and more people will want to buy. This is an expected move, as people tend to invest in stable assets during a significant economic crisis.

With these trends, using the space you already have is your asset. The average price for renting a basement starts at $900 and goes up depending on the amenities you offer. Finishing a walkout basement will add living space to your home and open a possibility for renting it out. This small investment will secure a stable income for your household and pay off within the first 2-3 years.

The COVID-19 pandemic hit the global economy, causing the 2020 stock market crash. Toronto Stock Exchange couldn’t avoid the powerful impact, resulting in the most significant drop of 12%. The government restrictions had a significant effect on the economy, resulting in a high unemployment rate. The tourism sector collapsed as a result of the travel restrictions. The pandemic has made stock investing so risky that people are seeking alternative ways to invest.

The crisis brings uncertainty, so people will want to feel safe with physical assets. These investments are less prone to fluctuations and are considered the most reliable during a global pandemic. Investing in real estate won’t get you a quick profit but is a more trustworthy option in the long run. Turning your walkout basement into a fully equipped apartment is a wise investment, perfect for the current uncertain conditions.

Many people lost their jobs, so they will likely seek a cheaper option for living. The rent prices depend on the city but expect to pay at least $2,000 for a house or apartment. A finished walkout basement is a common alternative for people that want to avoid the high costs. Vancouver has the most expensive rental prices, followed by Toronto.

Canada is a desired destination for immigrants, taking around 21.5% of the total population in 2019. There are about 300,000 new immigrants per year, which will impact the real estate market. Immigration increases the demand, which will result in higher rent and housing prices. If you have an empty and unfinished basement that doesn’t serve for anything other than storage, this is the perfect opportunity for you. Turn it into an independent apartment and list it on the market. Immigration is one of the significant factors that will boost rent prices, meaning that you can expect secure and growing income in the future.

A walkout basement has doors and windows on the ground level. This makes it the perfect living area extension, with direct access to the outdoor space. Go a step forward and add a raised patio for a seamless transition.

A walkout basement is the most desirable type of finished basement on the market because it feels like a home. No wonder, as it has plenty of natural sunlight that makes the space bright and airy. The access to an outdoor patio will make tenants happy and willing to pay more for this feature.

Despite the other benefits, it has a private entrance. Tenants prefer to have a separate entry, so this feature will raise the rent price and make your listing more competitive on the market.

Do you plan to start a business? One of the common problems is finding a physical location. Since the costs can quickly pile up for new companies, it is more feasible to turn your walkout basement into your workspace and avoid paying for commercial property. This is the best choice if you have frequent visits by customers or clients. The private entry allows you to host them while still keeping your privacy. There is no better option to put a clean line between work and personal life while still keeping the running costs low.

Investing in a walkout basement is a safe choice in uncertain times. Not that only you get extra square footage to suit your needs, but you secure a steady income with the potential to grow in the future. You don’t need to worry about anything, as the professional team of LevelUp Basement will take care of the project. Check our extensive portfolio here, and feel free to drop a message!