Renovate, extend or knock down and rebuild?
How to compare renovating, extending and rebuilding on space, planning and cost, before you commit to one.

If the house has character worth keeping and good bones, renovating and extending usually gives the best result for the money. If it's in poor condition, badly planned or holding the site back, rebuilding can make more sense. The right answer depends on the house, the site, the planning controls and your budget, so it's worth testing the options side by side before you decide.
Start with what the house gives you
Before comparing costs, look at what you already have. The questions that matter most are simple:
- Is the structure sound? Footings, frame and roof condition shape what renovating will really cost.
- Is there character worth keeping? Period façades, ceilings and proportions are hard to recreate.
- Does the plan work? Some houses just need opening up. Others are wrong in a way no extension will fix.
- What does the site allow? Orientation, setbacks, neighbours and overlays decide what each option can achieve.
When renovating and extending makes sense
Renovating works best when the front of the house is worth keeping and the problems sit at the back: dark living areas, a poor connection to the garden, or later additions that never quite worked. Keeping the original rooms and adding a well-planned extension often gives you more character and better light than starting again.
It can also be simpler in planning terms, particularly under a Heritage Overlay, where demolishing the original house is unlikely to be supported.
When rebuilding makes sense
Rebuilding is worth considering when the house is in poor condition, has little character, or sits awkwardly on the site. A new home lets you plan around orientation from the start, build to current energy standards and avoid the unknowns of older structures.
It isn't automatically cheaper. You're paying for demolition, a full new build and, often, a longer approval and construction period.
Comparing the options properly
The most useful step is to test both options against the same brief: what you need, what the site allows and what each is likely to cost. We do this as part of our feasibility work, so you can see the trade-offs clearly before committing to a direction.
A real example: Glass House
In Richmond, Glass House reworked a narrow 1890s workers' cottage rather than replacing it. The original cottage was kept, and a residual strip on the north side was used to bring light deep into the plan. The result has the character of the old house and the light and flow of a new one.
Questions we're often asked
Is it cheaper to renovate or rebuild?
It depends on the house. Renovating is often better value when the structure is sound and you're keeping much of it. When a lot needs replacing, the gap narrows quickly.
Do I need a planning permit to knock down my house?
You'll always need a building permit for demolition. If the property is under a Heritage Overlay, you'll also need a planning permit, and full demolition is often not supported.
Can you help me decide before I commit?
Yes. A feasibility study compares the options on your site, so you can choose with a clear view of scope and cost.
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We take on a small number of new homes and renovations each year.
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