The popularity of television shows that successful showcase ventures in flipping houses have led to an increase in the number of investors finding value in old homes and renovating them to make profits. Real estate investors are known as “house-flippers,” they find and purchase homes that have been overlooked and give these homes a makeover that would increase their value. Long Island Basement Remodeling is one of the ways to increase the amount of an existing home to get profit from a completed flip.
Long Island Real Estate Market Status
Long Island is a 1,402 square-mile geographical island located in the State of New York, United States. Long Island is a densely populated area where forty percent of the entire New York population is residing. As of 2017, Long Island has an estimated population of around 7.87 million residents who are distributed among King, Nassau, Queens, and Suffolk counties.
The population density of Long Island has made it an area with a challenging but rewarding real estate market. As of January 2020 statistics, the real estate market of Long Island has increased with house prices up by an average of 1.4 percent higher than January 2019 rates and also has a 0.5 increase in units sold as compared to last year.
However, when you look at these statistics, the real estate market in Long Island is underperforming as compared to the rest of the United States. The reason for this is that the foreclosure procedures on homes in Long Island and the State of New York take longer to complete, and thus, there are a lot of distressed homes that are ripe for taking but still cannot be entered into actual real estate listings.
The Aging Stock
Real estate investors can have a field day with all the aging housing stock located within Long Island. Old houses offer great opportunities for house flippers to find foreclosed homes and remodel them to increase their values before they get listed for selling. Because the area is already densely populated, Long Island does not have enough room to build a lot of new homes. The money to be made by real estate flippers will most likely come from the old houses that are waiting for foreclosure procedures to complete.
The Need for Remodeling
Since house-flippers are limited to old house stocks, they can take advantage of this market by remodeling distressed homes to make them look updated for younger homebuyers. One way of adding value to distressed homes is through Long Island basement remodeling. It is estimated that such an investment will give you as much as 70 percent return on your investment. Whether you plan to sell your home within a few years or keep it permanently, having a finished, well-remodeled basement will always be a great investment.
Since the main goal here is to flip homes, finishing the basement is a must. Gone are the days where basements were merely used for storage, and household members would dread to enter the basement because it was dark, gloomy, and creepy. New generation home buyers seek functionality, especially when it comes to the basement.
Tips for Renovating a Basement
However, a Long Island basement remodeling is not as simple as just putting up additional drywall and making the flooring look nice. There are a lot of considerations that have to be done before you can upgrade the look of a basement.
There are two main types of basements that a potential flip may have. The kind of remodeling that you will do to a basement should depend on the basement type.
- Walk-out basement. This type of basement is the most attractive to buyers since it gives the most amount of natural light in your basement and leads out into a backyard or patio. The best remodeling for a walk-out basement is to convert it into another living space with additional rooms or bathrooms that you can reserve for your kids or in-laws.
Standard and garden lot basement. This type of basement does not lead out to another area. Instead, this basement is entirely or partially underground and may or may not have natural light flowing in. You can take advantage of having less entry of natural light by converting this basement into a home theater or entertainment area. You can also have it function as an exercise area, a home spa, or a man cave depending on the size of your basement area.
Remodeling your basement will make a house financially attractive if ever you decide to flip it soon. A recent Long Island basement remodeling will represent that you gave a lot of thought in the functionality of the house, and therefore, it will sell at a higher price point. If you do a great job on the basement remodeling, it will help you enjoy your newly acquired house.