I went down this road with my old post-war place and the biggest surprise was how many “hidden” costs popped up once walls came down (old wiring, plumbing, asbestos, etc). Your budget could stretch if everything goes smooth, but 250k disappears quick once you start upgrading to a 4x2. I’d say get a builder to do a proper feasibility check before committing, that way you’ll know if it’s worth pouring the money in or better to look at moving.

Firstly ask the Council can you extend forward, otherwise you’ll need to stay within the existing footprint . That will shape our suggestions. And can you post an aerial view of the roof? Assuming that the laundry and sleep out are an addition, what is their condition?

You really need to get quotes from local builders. I assume knock down the lean to and build new bed bath laundry.

Thank you all! These are all great comments/suggestions for us to consider. We are very early on in our journey so apologies if we sound naive. We will look in to getting some quotes from builders and consult with the council. Is it worth getting a draftsman too?

I believe the sleep out section is original, with a potential asbestos raked ceiling.

The newer part of the home is the current master bedroom (perhaps added in 70s) I will post an aerial view in comments.

I will also try to measure a few rooms and repost a better floor plan/layout. We would plan to fence our front yard to create more space for our kids.

We really love this home, notably the high ceilings and jarrah floors. But just not sure if a large reno is worth it as we cannot gain any land space for more yard!!

Is the rear section at the same floor level as rest of house. And what is height of ceiling in that area plus room dimensions