How does renovation cost factored into property price?

Significant renovation will boost a property's value when it comes to refinancing and resales. Questions which commonly asked in respect to this issue are:

(i) How much of the initial renovation cost will be factored into the resales price / property's value?
(ii) What should be done to preserve the renovation's value?

(i) By nature, renovation is a part of torn and worn. Approximately, valuers will factor in 50% of the initial renovation cost into the property. However, age of the renovation might affect the used percentage for calculation, thus, the percentage will be higher when the renovation is new.

Rule of thumb is, CURRENT STANDARD UNIT VALUE + 50% of initial renovation cost = intrinsic value of property


(ii) Good safe keeping of initial receipt is essential in proving the value of renovation especially when the costly materials and renown workmanship come into place. The receipt should have all of these details and corresponding pricing stated clearly as all of these are not visible via naked eyes. A solid proof is essential to back up your claim.