Because I designed every facet of this space I love being there. I’m excited to roll in in the morning and smile with satisfaction when I lock up each night. I’d be shocked if that general attitude shift alone doesn’t make me at least 10%-15% more productive, so I’ll conservatively add another $20K to my annual work output.
Biggest of all is the general improvement to quality of life. Chill mornings, more time with my family, easier coordinating and transitions.
You can’t put a value on this. But because I’m trying to convince you to build an office, I’ll try. That’s worth at least $25K to me throughout the course of a year.
To add it all up:
One-Time Cost of $25K (Cost net of home equity increase)
Annual Return: $70K ($25K commute + $20K productivity + $25K quality of life)
Yes, finance geeks (like me), there’s also opportunity cost, depreciation, etc, etc.
This isn’t a CPA-level analysis. But I’m not sure you need one: A $25K one-time expense for $70K in annual benefits leaves a pretty healthy margin for error. I’m sold.
The versatility it gives your property is also a huge plus.
I use the space primarily as an office, but could easily transform it into a guest house for visiting friends, home for an elderly parent, rental for income or a dedicated mixing studio for my debut EDM album.
