Finishing Basement - financing?

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tin369
Posts: 69
Joined: Sat Feb 07, 2015 5:04 pm

Finishing Basement - financing?

Postby tin369 » Wed Jun 14, 2017 12:08 pm

Hi all,

So I am thinking of finishing up my basement through a contractor, after speaking to a friend who recently got his basement finished he said it cost him about $40,000 to finish his basement with a full bathroom and bedroom. He paid the labor part of it with cash about $20,000 and for the material he opened a HD credit card with 0% interest for 18 months and paid off his HD credit card minimum due every month and plans to pay off within the 18 month introductory 0% interest.

I do have cash to pay for it, but was wondering if this is a better strategy and use the cash to invest?

mcraepat9
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Joined: Thu Jul 16, 2015 11:46 am

Re: Finishing Basement - financing?

Postby mcraepat9 » Wed Jun 14, 2017 12:17 pm

tin369 wrote:Hi all,

So I am thinking of finishing up my basement through a contractor, after speaking to a friend who recently got his basement finished he said it cost him about $40,000 to finish his basement with a full bathroom and bedroom. He paid the labor part of it with cash about $20,000 and for the material he opened a HD credit card with 0% interest for 18 months and paid off his HD credit card minimum due every month and plans to pay off within the 18 month introductory 0% interest.

I do have cash to pay for it, but was wondering if this is a better strategy and use the cash to invest?


This seems like a lot of work for very little benefit - what is an 18 month CD yielding right now? maybe 1.25%?

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David Jay
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Joined: Mon Mar 30, 2015 5:54 am
Location: Michigan

Re: Finishing Basement - financing?

Postby David Jay » Wed Jun 14, 2017 3:40 pm

tin369 wrote:I do have cash to pay for it, but was wondering if this is a better strategy and use the cash to invest?


Nope, not worth the effort.
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius

mrsytf
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Re: Finishing Basement - financing?

Postby mrsytf » Wed Jun 14, 2017 9:03 pm

I would do it but not use HD's credit card. Capital one gives me 2miles per $1 spent. That's 40,000 miles which is good for a $400 airplane ticket. Discover is giving 5% rebate on home improvement stores until the end of June, but there is a cap on the amount spent. Offhand i don't know how much that is.

Either way if I could get something back for s project I had planned anyway I would probably do it.

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ram
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Location: Midwest

Re: Finishing Basement - financing?

Postby ram » Wed Jun 14, 2017 10:35 pm

Borrowing 20K at 0% and instead investing it at for an average of 9 months at 1.2% will earn you $180.
There are many CCs that pay better. See nerdwallet.com.
Ram

Saving$
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Joined: Sat Nov 05, 2011 8:33 pm

Re: Finishing Basement - financing?

Postby Saving$ » Thu Jun 15, 2017 12:05 am

I would look at opening a Pro account. At least at Lowe's you can structure this to get about a 5% discount.

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SkierMom
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Location: Northern CAli

Re: Finishing Basement - financing?

Postby SkierMom » Thu Jun 15, 2017 12:03 pm

What about using a rewards cc for the initial purchases, then paying it off?

1-2% AMEX rebate cards or a travel mileage card to earn 40,000 miles? I kindof like playing the game.

tin369
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Joined: Sat Feb 07, 2015 5:04 pm

Re: Finishing Basement - financing?

Postby tin369 » Thu Jun 15, 2017 1:54 pm

Another question about flooring, I have read so many people against putting carpet, but I feel anything other than carpet will not feel warm and cozy. I also don't have plumbing rough ins but am thinking of getting those toilets that don't require drilling a hole. Anyone here has any experience with that?

wolf359
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Re: Finishing Basement - financing?

Postby wolf359 » Thu Jun 15, 2017 2:00 pm

tin369 wrote: I also don't have plumbing rough ins but am thinking of getting those toilets that don't require drilling a hole. Anyone here has any experience with that?


What's that, a bucket you can empty? A composting toilet? An outhouse? :(

wolf359
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Joined: Sun Mar 15, 2015 8:47 am

Re: Finishing Basement - financing?

Postby wolf359 » Thu Jun 15, 2017 2:02 pm

tin369 wrote:Another question about flooring, I have read so many people against putting carpet, but I feel anything other than carpet will not feel warm and cozy. I also don't have plumbing rough ins but am thinking of getting those toilets that don't require drilling a hole. Anyone here has any experience with that?

We're going through with this as well. If you want carpet, get carpet. Most of the builders talking to us start with carpet as a default option, although others suggest laminate. There's also a manufactured wood option that isn't so cold.

tin369
Posts: 69
Joined: Sat Feb 07, 2015 5:04 pm

Re: Finishing Basement - financing?

Postby tin369 » Mon Jun 19, 2017 2:02 pm

I think its called upflush toilets, saniflow is one brand that I have heard of.


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