The feng shui issue with basements is that it is underground. Normally, it is considered inauspicious to live underground as that is where corpses (dead bodies) are buried. However, in many western countries, many houses are built with basements to be used as storage areas and access to utility items like water tanks and so forth.

Here are some quick tips on using basements as living spaces:

• It is not suitable as a master bedroom – but as a room for someone who is your dependent (i.e. your child or employee) it is ok. However, if used as a bedroom for anyone, the basement should have a window that allows natural light to enter. This is very important otherwise, it would have an inauspicious meaning for the person living there. This is especially true for an elderly person.  
• Basements are suitable to be used as a TV room, games room, working room for projects, garage for your car or storage room. 
• Basements should not be left as a big empty space. Otherwise, this will allow alot of yin energy to accumulate; this invites theft, burglary and many other undesirable yin type of energies.