Finishing your basement is a great way to create space in your home — and it’s an investment in your home that you can take all the way to the bank when it comes time to sell your home.

According to Remodeling magazine’s 2005 Cost vs. Value Report the national average cost for finishing the basement came in at just over $51,000 and pays back 90.1 per cent of the remodeling cost at resale.

There are many basement remodeling projects you can do: a family room; a second (or third) bathroom; a home office; a home entertainment centre; a playroom; a home gym; a wine cellar; a games room; a workshop or extra storage space.

Before you begin finishing your basement, however, a word of caution about the importance of checking the foundation for any repairs that may be needed. Seal any cracks and deal with any excess moisture issues you may have, otherwise you run the risk problems in the future.

Make sure to maintain access to plumbing and electrical wires in your finished basement. A great option for ongoing maintenance is pre-finished panels that can be removed when necessary.

For the ceiling you can install plasterboard, or if you have enough clearance acoustic or suspended tiles are a great option as well. For floor coverings a sub-floor is recommended rather than installing a product such as carpet, tile or laminate directly on the concrete floor.

Lighting, of course, should be a top priority as the space is likely to be darker than the upper levels. Make sure you have sufficient light for specific tasks, as well as ambient light for general purposes and visual appeal.

Take the time to choose your paint colors carefully. In the basement the play of light will be different than in the rest of the home. You’ll want to create a cheerful environment that is inviting and warm. Accessories can do wonders to add some creativity and style.

How much you spend finishing your basement depends, of course, on what end result you have in mind. Take the time to plan the whole renovation process to determine areas where you can minimize your costs. For some homeowners that may require doing a complete drawing of the entire space and a basic framing of all the rooms now, but holding off on finishing all the rooms until more cash is available.

The key to a successful basement remodeling project is to make sure it feels in keeping with the rest of your home. Scrimping too much on materials can make the space feel uninviting and dingy. By taking the time to plan your course, your basement remodeling project will be a space you will love to spend time in.