Build up or knock down: how to decide whether to renovate, rebuild or relocate

Whether a growing family has your home suddenly feeling smaller, your current build never quite suited your lifestyle or the passing of time has taken a toll on your space, sometimes your home doesn’t quite match up to your expectations. The unfortunately not-uncommon situation begs the question: renovate, rebuild or relocate?

For homeowners who love their current neighbourhood, the latter option is generally out of the question. However, each situation is unique, with each option accompanied by its own pros and cons. While relocating comes with the obvious costs of stamp duty, it often also represents a fresh start which can be appealing for individuals and families alike.

Meanwhile, building costs aren’t the only consideration when renovating or rebuilding your home; other factors such as council planning permissions, regulations for heritage-listed properties, and logistic factors need to be taken into account.

Here’s how to decide whether to renovate, rebuild or relocate.

Australia has been dubbed the ‘renovation nation’, with our collective appetite for architecturally savvy renovations only increasing. With lockdowns over the past few years seeing people spend more time in their homes than ever before, there is an increased desire for homes that do it all; striking the perfect balance between work and play.

Increased emphasis on the quality of life at home has led to more interest in renovating, with a survey conducted by bathroom specialists The Blue Space finding that one in three Australians planned on renovating their home in the next year, with a quarter of them inspired to renovate in order to better enjoy their spaces. Other reasons for renovating included refreshing an outdated room, adding value to their home, and catering to a growing family.

As in previous years, the kitchen continues to be the most popular space to renovate, closely followed by the bathroom. A rise in renovations made to alfresco areas confirms the increased emphasis on a connection with nature that arose during lockdowns.

Research conducted by NAB earlier this year showed that the surge in renovations was accompanied by increased difficulty in conducting renovations as well as increased expense.

“The COVID-19 pandemic has coincided with a surge in renovation activity as many Australians were confronted with significant lifestyle changes, including spending more time living and working at home,” said Dean Pearson, head of behavioural and industry economics at NAB. “Other factors, such as the HomeBuilder grant, rapidly rising house prices and people spending more time appreciating their local area and amenities, have also contributed to the growing desire and confidence to renovate.”

The global pandemic has impacted supply chains, causing a shortage of materials and quality tradespeople, while also extending construction times. Despite this, renovating continues to be a popular option. When compared to rebuilding and relocating, renovating is often the least disruptive option for homeowners. Depending on the type of renovation, you can still live in the house and avoid rent costs, and children can remain in their current schools.

Plus, renovating also represents a more eco-friendly option than a knock-down and rebuild.

“The construction industry is responsible for almost 40% of global carbon emissions,” Madeline Sewall, director of houses at carbon-neutral architecture practice Breathe, tells ArchiPro. “The simplest, most impactful thing we can do to tackle the climate crisis is to build less, which is why we love to help clients renovate.”

Representing the least cost to the environment and lower financial costs than moving home, renovating allows you to create the home of your dreams in your current neighbourhood. However, renovating can also be the most time-consuming and labour-intensive option of the three; requiring patience and tenacity. This is also amplified by the national building materials and labour shortage.

Depending on the type and scale of the changes made, renovations can be more expensive per square metre than rebuilds. This typically applies to large-scale renovations where plumbing and electrical alterations are made, as well as major extensions. Those with heritage properties will likely also encounter red tape in terms of amendments that can be made. Heritage properties often have strict regulations in terms of retaining the facade, however, the internal elements can usually be renovated and modernised, making for the perfect fusion of old and new.

For some, knocking down the current structure and rebuilding from scratch is the best option. While knocking down and rebuilding represents a higher initial cost and increased hassle in the short term, for those sitting on a good block of land, a new home in a well-established location is an apt investment.

Those who aren’t fans of compromising may also have better luck with rebuilding, as the entire design can be customised to suit your needs and tastes. Homeowners desirous of smart home features will likely also have better success with a newly built home, as these functions are easier to incorporate into a new home than integrate into a pre-existing one.

As an entirely new house, it won’t come with any adverse surprises, won’t require ongoing maintenance costs, and are typically more energy efficient than their older counterparts. Plus, if adding value is a key motivation, knock-down-rebuilds often come with a higher sale price.

For those living in houses with structural problems, poor building orientation, and issues such as termites or rising damp, a known-down and rebuild may be the only option.

However, regulations can pose a hassle when rebuilding, with new legislation potentially requiring houses maintain a certain distance from stormwater drains, or be built to higher standards in terms of environmental – think flood and fire – protection.

In the short term, there is also a higher financial and emotional output for homeowners. During the rebuilding process, homeowners will need to pay rent until their home is ready. The building process can also be draining, particularly in light of pandemic-related shortages. Hiring a project manager can help alleviate this stress, reduce disruption to your daily life, and help the process run more smoothly.

If you’re not overly attached to your current neighbourhood, there’s a certain allure to the idea of moving away and starting afresh. Stamp duty costs are a key financial consideration, however, depending on the circumstances, this can sometimes make more sense than a costly renovation or time-consuming knock-down and rebuild.

Additionally, lockdowns and the rise of flexible working have shed light on the benefits of a connection to nature. For those looking for more space and greener pastures, relocating to coastal or regional areas can serve to improve your overall quality of life.

Keen to kickstart your renovation or rebuild process? Find a trusted architect or building professional on ArchiPro.