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Sunday, March 27, 2011

Designing Your New Basement

JH Basement Finish Company
Design Ideas
*Media Room:    Since it’s quiet and secluded, the basement can be the perfect place to escape and watch a movie in an entertainment room or home theatre.  If your basement is dark, it can be ideal for a media room - simply install indirect lighting on a dimmer switch for once the show is over.  You’ll want to take special care with wall and floor covering as well as furnishings, to preserve the sound quality.
*Activity Room:    Whether it’s a home workshop for the do-it-yourselfer in the family, an art studio, or a child’s playroom, you can find a home for it in the basement.  It’s easily accessible yet out of the way, and will free up space upstairs.
*Laundry Room:    Consumers are asking home designers for more and more out of their laundry rooms and the basement is one spot where it’s easy to deliver.  It offers space that is usually hard to come by on a house’s main level, and is easy access to necessary components like water and drainage.
*Wine Cellar:    There’s a reason you’ve never heard of a “wine attic.” The temperature climate of a basement is perfectly suited for storing wine.  If you are a connoisseur - or would like to be - think about including a wine cellar in the plans for your new basement.
*Rec Room:    Entertaining can be a blast in a fully outfitted recreation room, complete with a pool table or other fun accessories.  Decorate however you would like, and have fun with it - homeowners often feel more comfortable taking chances with decorating themes in their basements that they might be hesitant to try upstairs.  A walkout basement can even be more suited for entertaining in warm weather if it opens up to a patio or backyard.
Home Spa:    If you want to really indulge - and enjoy the peace and quiet of the basement - consider adding a whirlpool or sauna to your basement.
With all these options, its no surprise that more and more homeowners are discovering the 
benefits of basements.
***Courtesy of eplans

Saturday, March 5, 2011

Financial Options

JH Basement Finish Company
Financial Strategies
      These are tough economic times, the stock market is volatile, IRA’s are in jeopardy and we have seen the equity in home values drop.  The question becomes is this the right time to make a major investment in your home?  The answer is yes!  According to market experts within 12 months we will not only see the values of homes return but a single family home remains the major contributing factor to long-term individual wealth.        
Money has and will always be safer in real estate than in any other area of investment.  As a bonus, the cost of finishing your basement has declined during the past months but will rise substantially as the financial crisis is resolved.  So, even though this decision needs to be considered carefully - now is the right time for such an investment.  There are several fiscally sound options to obtaining the initial capital required. 
Refinance of Existing First Mortgage:    Mortgage rates are low, possibly lower than when your home was originally purchased.  By refinancing your existing mortgage, it is feasible that your payment will be lower than it is currently.  Also, since this money is being invested directly back into your home, no equity is lost.  This is also a viable alternative because the interest on this loan is then tax deductible.  This is a sound financial choice.
      We can provide you with contacts at several mortgage companies and although we cannot endorse any one in particular, we have had success with all of them.  
Second Mortgage:    This is a popular alternative to homeowners.  There are a couple of different ways to obtain a second mortgage.  You can apply for an open-ended equity loan.  With this loan you will pay interest only on the amount you have borrowed to that point.  You can also obtain a fixed second mortgaged based on the current value of your home.  We can provide you with contacts for this type of loan as well. 
Debt Consolidation Loan:     This loan can consolidate other higher interest debts such as credit cards and open lines of credit with the money needed for the basement finish for a new lower interest loan.  The monthly payment on the consolidation loan, including the money needed to finish your basement, is generally equal to the combination of the individual debts.  This is a great selection if you would like to consolidate at the same time you finish your basement, and are concerned with higher monthly payments.
Rental Property Income Loan:    Most importantly, do not forget that your basement is now an asset.  Recent studies have shown that a one-bedroom basement apartment will rent for between $1,200.00 - $1,400.00 per month.  Even considering a loan of $40,000.00 with payments of approximately $400.00 a month, it is feasible that you will show a net profit of approximately $800.00 to $1,000.00 per month beginning directly after the basement is finished.  Many clients have renters lined up before the basement construction is complete.  With no initial investment, this is a great way to increase your monthly income.