Home renovation vs extension

There are many different reasons why people decide they want to renovate or extend their current living situation. You may simply want to update the look and feel of your space or improve areas like the kitchen or bathroom for re-sell value. Renovations can aid in making a space feel larger, or mean you can use the space more effectively. If you’re wanting to physically add more space to your home, you may be considering a home extension – adding another whole storey, an extra room or even a granny flat.

Whether you opt for an extension/addition or renovation, there are multiple pros and cons for both. Your decision also depends on your budget, desired time taken to complete the project, and most importantly, what you want to get out of it – adding more space, reconfiguring, updating the look – whatever it may be, here are the pros and cons for extensions and renovations.

Extensions: the pros and cons

Pros

• It can increase the value of your home.
• Ground floor extensions are typically more affordable than adding another floor or excavating basement space.
• Adds more space.
• It can change the way the natural light flows into rooms, potentially energy saving.
• An extension is cheaper than buying a new home. It saves the hassle of selling your previous home, hiring a real estate agent, paying off the mortgage and starting to pay off another mortgage on the new home.
• Adding an extension upwards rather than outwards preserves your backyard and garden.

Cons

• Tends to be more expensive than renovations.
• Home extensions can be more expensive if your house resides on a slope.
• Generally, extending your home upwards is more expensive than extending outwards.

Renovations: the pros and cons

Pros

• It can increase the value of your home.
• Typically cheaper than extensions and additions.
• Less than half the expense will go towards materials – around one-third of the final cost will go towards materials.

Cons

• Smaller renovations can end up more expensive per square metre than larger renos as many overhead costs are at a fixed cost e.g. getting a DA from your council.
• Fees, levies, permits, taxes and GST accounts for around 20% of the overall cost of the reno.
• If you’re planning to put your house on the market after the renovation, going overboard with expensive fittings such as high end taps, door handles and tiles can end up doing more harm than good. It’s likely that potential buyers won’t necessarily have the same preferences as you and won’t be prepared to pay extra for it.

Wrap up

Evaluating the pros and cons of your possible options may aid you in the process of choice. However, it’s likely that you already have an idea of what you’d like to alter regarding your home, and it’s more useful to be informed on what to expect based on your personal preferences and constraints – whether it’s your budget, land size or anything else. The process of building and renovating is a complicated process that can prove difficult to comprehend fully. If you’re still feeling lost, connect with a builder or renovations expert to obtain a quote for your desired project.