I'd go for the basement too. More room is always better. I have an upstairs bedroom since I don't have a basement. I just took two metal 3 shelf units from Home Depot and put a board over them covered with batting and the reflective fabric you buy at Joanne's to make an ironing station. I made it long enough to give me knee room in the middle if I choose to sit while I iron. I now have six shelves to store stuff underneath. It's wonderful.
As far as the floor, look into the new durable vinyl floating floors. I have Pergo and hate it. Too noisy, if you drop your scissors, there is a scratch and I find it too slippery. Plus in the basement, in case you do ever have a moisture problem, Pergo can warp, as me how I know.
Good luck. Having your own dedicated space makes any hobby so much more productive.