If you've ever seen The Block, we'd forgive you for believing that renovating a home is an always exciting process. But even these shows are a good representation of how much work is required to build and renovate a new home, and the unpredictable events that can creep up on you, as well as unexpected costs. To help you figure out which option is right for you, we have made this guide on the pros and cons of renovating or rebuilding your new home.

Pros of Renovation

Any upgrades you make to your home will increase its value on the market. If there is a room or two that could use a touch-up, renovating first means you have a higher chance of selling for more than you bought. Another advantage is that, depending on the management of the project, you may able to live in the home amongst the renovations. As long as you don’t mind a little dust or not having access to the kitchen or bathroom for a few weeks, this will save you from the stress of relocating.

Cons of Renovation

Renovations are generally more costly in the long term than new builds. This is because most people underestimate how much work and money will be required to get the job done! Most renovators find themselves exceeding budget and available finances without professional guidance, especially if it’s a DIY project that inevitably reveals hidden costs that have not been planned or budgeted for. Another major disadvantage is that your renovations are limited by the existing structure.

Rebuild Pros

A major advantage of knocking down and rebuilding your home is complete control over the project, including the design, aesthetics and overall scope. Many people find a rebuild project offers a sense of creative empowerment, with the knowledge that you have the freedom to make the home of your dreams. As you are not limited by the existing building structure, a more customised layout can be achieved.

Rebuild Cons

Building a new house from the ground up can take roughly 8 to 12 months, depending on the scope of the project. Whilst paying to live elsewhere during construction, you must also seek local Council approvals, a complex and often stressful process. Given the many regulations and directives to consider when approaching your council, it helps to have a professional design team on hand to help prevent rejection of your rebuild permit.

Stamp Duty

When making decisions about land, homes and renovations, remember that buying or building a new home in a new location requires you to pay stamp duty. In most of Australia, you pay this one-off fee based on the value of the property or land – and within 30 days of settlement – and this could potentially be upwards of $20k. For a renovation or knockdown rebuild, you already own the land therefore, you pay zero stamp duty.