we're in the same boat and have decided to build 2 townhouses at the rear of existing house for investment purposes and to live in one short term. goodluck with comments

We are renovating our house in QLD, but in hindsight I would have pulled it down and started again. That way you get to inform a design that really works for you in the longer term, and it will likely be much cheaper overall!

Depends on a lot of things:
* the condition of your house will ultimately determine how much your renovation will cost - initial works / inspections can uncover some ugly expensive issues that have to be rectified before any new work commences e.g. roof needs redoing (allow min $10k), rotten structural timber in walls, removal of asbestos (if you have it) which requires a licensed contractor to carry out
* site access - from what I can see from your photo, side access seems limited which may inhibit trades from getting heavy equipment / trucks to the rear of the house
* town planning rules - local council planning by-laws dictates the maximum building footprint (commonly called Gross Floor Area or GFA) so if you're extending this may be an issue and if your local council is precious about the style of houses in the area you may not be able to demolish the house and build new (unlikely in your case)
* whether your objectives can be achieved by staying within the existing building footprint, if so how many structural walls do you have to move around / eliminate?
* are services in the same place as where you're proposing to locate second bathroom? If not, be prepared to spend several thousands to extend pipework (significant costs involved with going through the concrete slab)
* do you and/or the other half have the skills to do some of the work? Biggest savings to be had if either of you is a licensed builder / carpenter / plumber / electrician. Alternatively can you get mates rates with (reliable) friends and family in the industry?
* both renovate and build new scenarios will involve you moving into a temporary residence, albeit a lot longer with a build new scenario
* do you mind living in a construction site for six months?
* with the kitchen being the most expensive room in the house, are you retaining the appliances, cupboard carcasses and getting on new doors, handles and benchtops or will it be a complete demolish and start again? Difference can be $5k for a cosmetic update to $25-$35k+ for an entirely new kitchen

I'd recommend drawing up a rough plan of the house in its current configuration (to scale would help a lot) or speaking to an accredited building designer (step down from an architect), figuring out what type of finishes you're looking for (e.g. floating vs hardwood floor, nylon vs wool carpet, ceramic vs stone tiles, Caesarstone vs laminate benchtops) and speak to a couple of renovation builders to get an idea of cost. Then speak with a few project home builders and get indicative costs about demolish the existing house and building a new three bedroom, two bathroom house, just be careful about adding things that weren't in the renovation plan e.g. powder room, garage etc. And only give the builders essential information so you can avoid them giving you an unrealistic cost to convince you to renovate / build new. Generally speaking, the more extensive the renovation work, the better a new build works out in the long run.

Extensive renovations are definitely much more gruelling for both owners and builder. In saying that renovating can be very rewarding if you're prepared to put in the effort throughout the process. In either case do heaps of research (forums are brilliant source of info), talk to heaps of experts (including the bank manager if you need to borrow and local real estate agents), figure out what you really want early on AND stick to it.

Excellent advice from Julie.
Your home does have some street appeal which can be expanded on with new windows, new roof etc. It all depends on how much money you want to put into your home with its transformation.
I personally would never build. There are a lot of positives re upgrading your existing home vs building new. The apparent quality of new builds is questionable. Older homes have a better structural footprint to many homes built from scratch.
I think that your existing home is worth the upgrade, but then you know the internal framework/layout better than any readers and the scope for improvement.
Alison

I agree with Julie and Alison. I have a soft spot for these types of homes so I am more biased towards renovating and extending as opposed to knock down ☺

I have the exact same house. Mine was in a terrible state, and was not even liveable. I recommend renovating as the brick veneer houses were built solid and have features you won't get in a new build.

Although I am bias towards rebuilding (personally, when I am married, I really want to have my home built from scratch!), I would suggest renovating as you have already got the house so it would be cheaper and take less time and you could renovate room by room as you go. For a first home I would build, subsequent homes I would renovate). However, if you have the money and time to rebuild then by all means go for it!!! Congratulations!! :D

As someone who has renovated 3 homes of my own (as well as helped lots of clients do theirs), I always prefer renovation over rebuild. I always find it fantastic and exciting that people want to take their home, and reinvigorate them, help them live on to tell another story - their own story.
Your home has character, and these homes are part of the fabric of our suburbs. I heard Kevin McCloud say that when we demolish old homes, it's like taking a book, and tearing out a page at a time, and soon enough, we can't tell what the book was about anymore.
That aside, it will generally be more expensive to renovate (on a square meterage comparison) than building new. I have a recording with some strategies you can use to renovate efficiently and economically, and manage this overall - they involve how you actually approach and design the renovation. You can download it for free from my website (you just have to pop in your email address) ... there's some other freebies and resources available there that may interest you and help with your decision. I think strategy 2 and 4 would be applicable for your project in particular.
http://undercoverarchitect.com/freebies/
Best wishes with it ... I recommend you just make sure you do your homework upfront. Getting some sketch concepts done for renovation ideas, and comparing that to the COMPLETE price of a new build is definitely worthwhile. Julie's advice in terms of checking your local planning legislation is worthwhile, and you may want to consider getting a soil test and survey done, which you'll need for either avenue. It will then help you get some real understanding of requirements for structure, slab design etc (which can be a grey area that is just 'allowed' for in quotes, and can be a nasty surprise when the tests are done later in the process).
Hope that helps - look forward to seeing what you decide :) - Amelia Lee, Undercover Architect

I love my post war cottage home. Renovate, steer clear of McMansions and great huge soulless homes. Keep your street scape sympathetic no matter what you choose to do or else your home will always look out of place

I think it would be a real shame to knock it down. Its a nice house. Are you sure you need a larger house? There is a trend to smaller houses in general, could you rework some of the space to get more use out of the house? Looking at small and tiny house blogs could give you more ideas about how to maximise the space. I have a growing family but we still don't need more than 2 bedrooms as long as we have workable practical living areas and a good kitchen. A nice outdoor eating area could really maximise your space without costing too much. Consider adding a patio or queensland room for extra space.
Another option would be to just be patient and keep an eye out in the local area for a larger house for sale. I think in the current market you get better value buying than building. Then you could sell your house. I mean consider the cost of demolishing and rebuilding the house. Then compare with a renovation adding a bedroom + a kitchen redo. I would say both would be getting on 100K ( though that's a pretty vague estimate)
How much is your house worth as is and what would you need to spend to buy.
Could you draw a little floor plan? You might be able to swap around rooms and open up some spaces to get more use out of what you have without spending too much.

I've seen a couple of renovations/extensions in my local area (although usually with weatherboard cottages) where a modern extension has been added to the rear of the property.

The owners went with a clearly contemporary style, but it was still complimentary to the original building. If I had to hazard a guess, it looks like they turned the "existing" house into bedrooms and added a large, open plan living space with lounge, dining and kitchen as part of the extension. Have you considered doing something similar?

My goodness - I hadn't realised how much commentary I'd received - opps!!! Thanks for all your feedback, opinions, suggestions etc... it's such a huge decision for us. Since my original post, we had a construction company, specialising in extensions, provide a rough quote for the "fix up" of our existing home + addition of a living space... the cost was mighty frightening at a starting amount of $400k! Seems kitchen and bathroom modifications and additions bring in the big $$$$
At the same time, we've looked at the cost of a rebuild - factoring in demolition, site costs etc - we anticipate coming in way under that amount.
The prospect of not extending and living in the space we have is not for us. We live in 12 squares today and are looking to maybe double this - certainly not McMansion territory (i hate cleaning!)
Buying elsewhere in our area... after stamp duty and selling costs, we'd probably be further out of pocket than both the reno or knock down rebuild options - so that's a no go.
We hope this little piece of dirt will hold the home we will live in for a very very long period of time... so the homework will continue!

Wow 400K! I was thinking it would cost hundreds of thousands but not that much!
Maybe have a thorough look at tiny and small house ideas. See what you could do with the square feet you have. I am sure with a little creativity you could make it work. I understand how hard it is to get somewhere now. I can't fathom HOW it could cost more than 400K + the cost of your house to buy somewhere, but I am sure you are right! Property is crazy expensive!
Share your floor plan and what you are looking for in your living space and lets see where we can squeeze out some extra space for you. You might find with rearranging some bits your space becomes more usable. Do you have a garage or outbuildings you could repurpose to add some room?

Hi tracendave11

I actually ended up writing a blog on this very topic after seeing your post. (see link here http://undercoverarchitect.com/?p=1904).

Renovating vs rebuilding is a question a lot of clients of mine juggle mentally and financially to determine which will be the best outcome for them, their needs and their budget.

Yes, kitchen and bathroom modifications will cost considerably more than general areas - because they are usually quite condensed in size, involve more expensive finishes, fittings and appliances, and several trades to coordinate and deliver. Saying that, they can also be done super-economically. It will all be about what benchmark of finish and aesthetic you're chasing. My husband and I renovated 3 homes over 12 years (living in each whilst we did). All of our kitchens were flat pack kitchens, built for less than $5K plus appliances. The first was actually $5K including appliances (the last kitchen was $5K plus appliances because it was in a home we sold for $1.575M - so it was a massive kitchen). We've done bathrooms for under $3K. Some involved DIY, some didn't.

Adding a contemporary extension, like a backyard pavilion, that disrupts your existing home as little as possible, is by far the most economical approach to adding new space to your home. By doing that, you achieve the economies of 'building new' and the lower square metre rate you can achieve than renovating.

If you are massively reworking the interior of the existing home, that will come at a big cost impost, particularly as it is a brick home and may involve some structural reconfiguration to make this happen.

Please be wary of the 'advertised' cost of building new. I have been in the industry for 20 years, including working for a big residential developer for 7 of those. With that experience, and especially as part of my current business, I have been doing A LOT of research into the off-the-plan and project home/volume builder industry over the years. Often you will not know the exact, contractual price of your home, until you have already invested time and money in soil tests, surveys and other contract deposits - by which stage you're too invested financially and emotionally to back out. And sometimes (and this comes from people inside of this industry) companies will lower the estimated price (the one that the salesperson prepares for you after you've paid your $2,000 - $3,000 deposit for soil test and survey, but before your contract deposit), knowing that the final costs that get done formally within the estimating division will have increased preliminary costs and slab upgrades not allowed for in the salesperson's estimate. It is actually very difficult to get an exact price for your build until you have got to that point - any many companies out there rely on that as part of the process. There are some well-reputed ones, where the salesperson's estimate will be very close to the contract price, but they're hard to find. And any changes to the floor plan, or any upgrades in fixtures, finishes and fittings, all come at high margins and additional costs.

I spent a day at a sales village as a secret shopper - you can read about it here (in two parts).
Part 1
http://undercoverarchitect.com/?p=1440
Part 2
http://undercoverarchitect.com/?p=1455

If you look at this project, (see link http://undercoverarchitect.com/?p=1614) the extension to the home (which is a 2 storey space including kitchen, living, dining, kids' space, laundry, powder room, stair void, big bedroom, master suite with WIR and ensuite, and a library next to the void - all around 150m2 in size) was built for $290,000.

The modifications made to the existing home (which involved demolishing and relocating one wall, and turning a bedroom into a bathroom, some reworking of the front stairs, and the adding of the carport and carparking underneath - fairly minor overall but fiddly and time-consuming) were around $150,000. So work to the existing home was at a radically higher price/m2 than the new build. And building the extension as a separate component that broke into the existing house at the point of the new stair void (which tucked under the existing roof) was key in keeping the extension economical and getting bang for buck.

If you look at the Denning Street home here, this was my own renovation, and a brick home we completely modernised, and extended in alignment with the existing roof. We spent about $100,000 renovating this home - new bathroom, new kitchen, opening up the living/kitchen/dining area, and adding on the outdoor room, all new landscaping and modernising all the bedrooms, adding robes and lighting, putting a new laundry in and adding the study nook, polishing floorboards and the concrete slab (which was under carpet and cork flooring), and a new metal roof. It was a full brick home that we rendered and it completely modernised it. Link is http://undercoverarchitect.com/?p=1521

So it is possible to do it economically. You already have a home - which is a head start, not a liability. It's about being strategic with how you use it to create the additional space you need, and a home that suits your needs and lifestyle.

I do consultations by Skype if you wanted some help with ideas (you can read about them here http://undercoverarchitect.com/?p=1729). There is an app you can download call "Room Scan" which helps you draw a floor plan of your home. It may be a place to start scribbling and formulating what you're seeking, to then get advice on how to achieve it economically. Link is here https://itunes.apple.com/au/app/roomscan-app-that-draws-floor/id571436618?mt=8

Best wishes - as I saw someone else say elsewhere on Houzz (and this was from a non-professional) "Designing and building your own house can be the most exciting and wonderful project, or it can be dispiriting and vastly expensive to both build and to live in. Your choice."

Keep educated and informed, and get the right team around you, and you'll stay on the "exciting and wonderful" side of that equation.

Warm Regards
Amelia Lee
Undercover Architect
www.undercoverarchitect.com
amelia@undercoverarchitect.com

Undercover Architect I feel very special!! I'll spend some time reading through your article but thought I'd add some of our current home issues which will need addressing if we end up renovating...
- we have asbestos eaves, side fence, garage, laundry and toilet... Chose to maintain these when we moved in but if we were renovating all of this would need to be removed and replaced ( obviously an extra cost for demo too)
- we have ugly 80s aluminium windows which are definitely not our favourites... But they work!
- our home needs re-stumping, re-wiring and re-plumbing... We haven't had the roof checked as yet
- I'm sure we have a negative energy rating... We leak heat in winter and boil in the summer
- we have one toilet... Say no more!
- our bathroom is okay but the shower is less than 1m x 1m
- our sunroom is a "tacked on" aluminium and glass, flat roofed box... Our back door doesn't shut unless we lock it... Frustrating!
- we made our kitchen clean and functional installing a flat pack and cheap but new appliances when we moved in (7 years) but it is tiny... We love entertaining and this is a massive limitation.
- there are no significant internal features we absolutely love...
- we have fall on our block so when you step out the back door you have to walk down about 6 steps

We are not in the DIY category owing to young kids, full time work for both etc etc So that's where we're at... I've attached our existing floor plan to give a guide as to what we're working with...

Enjoy! And thanks for the feedback :)

Oops... Forgot to mention we have a north facing backyard

tracendave11 - my pleasure. Can you tell me where north is in relation to that floor plan? Thanks - Amelia, UA

North is directly behind us... So at the top of that image

And what are you trying to achieve ... extra living space, extra bedrooms etc? ie are you hoping to end up with 4 bed, 2 bathroom, 2 car, 2 living home (which is pretty standard for family homes these days!) or something smaller or bigger?

Are you able to email me your street address so I can see you on googlemaps? (If you're comfortable doing that - it would just be helpful to see what's around you and how much room you have on your block) - amelia@undercoverarchitect.com

Amelia... I'll send you my address. The floor plan we are considering would have
- 3 bedrooms
- study
- 2 car garage with internal access
- 2 bathrooms
- 1 large kitchen and meals area with a walk in pantry
- 1 living room/ rumpus room
- alfresco area under the roof line

Whilst we want some extra space now we don't want the home to be so large that a downsize is a must later in life...

Hi Tracendave11,

I don't have the answers for you, but Building Designer Adam Hobill has written an article about the cost of renovations here: https://www.houzz.com.au/magazine/5-reasons-renovating-costs-more-than-building-from-scratch-stsetivw-vs~39446294 It might help answer a few of your questions.

Loving this post, so many great comments, you guys are amazing. Thank you for taking the time to help others :) I just opened my own,dilemma post, hopefully it will get some good responses. Good luck on your decision. We are in Melbourne too and buying. New home at the moment is only a dream thus we are considering Reno too :)

Add on. The old brick houses are usually solid. Get a structural inspection before deciding.

You do need to weigh up your options. If you sell as is, can you afford to buy what you want where you want.
We completely renovated our house 20 years ago, up, back etc etc. we loved it and it worked for us. Would we do it again, possibly not.
Basically you really need to check all your options.
Look at display homes.
Start really checking out other houses in your area and start going to any home opens.
Problem is, that we get too comfortable in our own spaces that we don't explore what else is available.

Undercoverarchitect That is exactly what i would do. We have just finished renovating a similar house but had back yard constraints so we could not do this and had to go to the sides. $350k later thank you very much we love the finished product and would not have left our street as our neighbours are all fantastic. We are planning on keeping the house for years so it all adds up. You need to add up all the factors and sometimes knocking down is best for you.

Hi Denise - it's great that you have been able to stay in an area you love so much and get the result for your home.

When viewed over the years you (or anyone else) owns the home the investment does measure up ... especially if you ensure you're not overcapitalising when you do renovate and extend.

Everyone's situation is unique, so it's important they decide what is best for them ... and do it with the best information and advice they can obtain.

Best wishes for enjoying many years in your home.

Regards,

Amelia, UA x

www.undercoverarchitect.com

e've only ever done cosmetic changes but wowsers, undercover architect is really offering some clever, reasonably priced and really practical options. Things a raw beginner would not even think about but I am sure contribute to the livability of the finished works. I worked for a lady who had a builder but did most of the design of the pull down and rebuild herself - and she was so unhappy with the result. So many things and spaces just didn't work. Terribly planned storage, a n open family/dining kitchen - with sports mad hubby & 3 teenage sons glued to the tv booming a few feet away, so while she used to love cooking she could not have any peace and quiet to potter in the kitchen, the tv facing her so she couldn't ignore it. It was awful! You need young children close by but when they get older - erk - you don't want to live beside a teenager!Six months in and she loathed it more every day. My suggestion was perhaps get in an architect or even decorator to give her some ideas and save her sanity. So I'll be very interested and be keeping my eye out for your final decision!

Thank you @juliamac19 for such kind words, and constructive feedback in your comment. Unfortunately, your friend's story is very common, and a lot of homeowners miss that window of opportunity to make a big difference to their home because they don't get that upfront design guidance. Hopefully she can amend some of those choices and improve her lifestyle in her home overall.

Happy New Year to you, and thanks again,

Amelia, UA x

www.undercoverarchitect.com

both renovated and built from new and much as I LOVE renovating you will get the best value for yourselves and resale out of maximising the block with a knock down and new build but always talk to council and builder for ideas of what's possible before having final plans drawn up...too many people waste money on overblown designs only to find that they can't use them due to council or budget constraints

What happened to this house in the end, renovated or detonated ?

@wuff plan is to detonate! Another year on and our old home is showing serious signs of age... expensive signs at that! Timing is for early 2017

Look forward to seeing finished new home ...good luck, you get a chance to customise to your needs, exciting time ahead

I own a 1966 house double brick strip footings and lots of cracks due to reactive soil in South Australia. I am demolishing for 13,000 and rebuilding 180,000 for brick veneer with massive amounts of insulation and energy effective bells and whistles. not a mcmansion just effective and efficient and I retain the ability to sub divide my block later due to repositioning of house. Infilling is a reality allowing reduction in energy use by others as well as me.

Tracendave, please keep us posted here.

Hi Tracendave11, What happened to the house today than in 2015?

We have a similar home in a sydney beach suburb. We are in a different position where we have bought ours as a downsized but are just about to restore the old 50s beauty to its former self.
We have quotes of around $400000 to gut and change the floor plan which includes 2 bathrooms and a new kitchen and also add internal stairs to the garage and a large deck off the back, lift some ceilings and replace gutters, eaves ect ect ect.
Attached are my inspiration boards and what the house looks like now, hopefully in about 4 months I can update you.

I think it depends on orientation and costs. If your house is well situated on the block and solid, go renovation. The costs of fixing a poor orientation may make a rebuild a better option, as well as being able to incorporate solar passive and energy saving ideas. Look at those basics before deciding. Whichever way you go, it's going to cost a lot, so you need to get what you want for that expenditure.

Our house looks almost identical to yours. We did an extension 2 years ago and kept the ‘period’ features (cornices, ceiling heights) in the new part. We love it. We love that it’s a nod to the past, but functional for our modern lives. We love that it’s not the same as what seems to be every new house being built today. Seems so much more sustainable to extend too.

@palaone We're making progress.. rebuild is nearing completion and we can't wait to call this home... watching our ideas turn into drawings and then come to life has been fascinating... watching our neighbours relief that we've built a home and not subdivided our block to build units/townhouses has been nice too!
Love that the Houzz community is still so interested in this topic!