Renovate vs. Knock Down Rebuild - How to Decide What’s Right for your Home
The question of whether to renovate, partially rebuild, or knock down and rebuild your home is a decision path lined with pros and cons, what ifs, and how to’s. It’s ultimately a decision where you want to ensure you achieve the best value in line with your goals.
Many who plan to undertake a home upgrade project will spend months, and even years, trying to navigate which path will achieve their desired outcome for the right budget, timeline and quality. With so many decisions to make, so many professionals to engage, different planning approval options to consider, and the significant cost expected to be incurred, it can be a daunting task. To help navigate the process, we’ve developed this guide to help you understand when it’s worth renovating and when a full knockdown rebuild makes more sense, using practical criteria, cost comparisons, and professional planning advice.
Step 1: Evaluate the Potential of Your Current Home
Before diving into your dream kitchen or that gorgeous new wardrobe, step back and assess whether your existing house is the right foundation to build on.
Orientation - Does your existing home make the best use of the site you’re on?
Does it allow for sunlight when you want warmth, and shade when you don’t?
Is your current home bright and airy with good cross-ventilation, or is it pokey, damp and dark?
Are you making the most of any available views and outdoor living spaces? Or are you staring into your neighbour’s property?
Structural Integrity - The current, or near future, condition of your existing home will play a big part in deciding whether it’s worth keeping or demolishing.
Are the foundations and framework solid and free from rising damp, termites, wood rot, movement, and cracking?
Is your home looking and feeling tired, and showing signs of age (inside or out)?
Does your home include period features worth restoring like original timber floors, ornate ceilings, or a character façade?
Site Constraints
Could zoning, heritage listings, or bushfire/flood overlays limit your design ambitions?
Would a new build allow a more efficient footprint and better use of your site?
If your site or current home’s structure is holding back your vision, a knockdown rebuild may be the cleaner, more cost‑effective path forward.
Step 2: Clarify your Brief, Budget and Long Term Plans
A realistic brief and budget are key to avoiding overcapitalisation. Ask yourself:
Are you upgrading your home for the next 10–15 years, or thinking about selling in the next 5 years?
Do you want a modernised version of your current house, or something entirely new?
How much are you willing to invest without exceeding the ceiling price for your suburb?
Cost reality check:
Renovations can appear cheaper and faster, but can reveal structural surprises (e.g. shaky foundations) and building code compliance upgrades that escalate costs.
Knockdown rebuilds require demolition and site preparation, but they deliver design freedom, energy efficiency, and increased overall capital value.
Step 3: Compare Your Options
If your existing home has structural integrity and you want to keep some of the current floorplan and aesthetic features, a renovation or partial rebuild may be a better option for your project. Let’s take a closer look at the available pathways:
Major Renovation
Ideal for: Homes with a solid structure and good “bones” that simply need more space and/or refreshed finishes. In some cases, more space can be achieved by simply redesigning the current floorplan for better flow and functionality.
Scope: Redesigned floor plans, updated kitchens/bathrooms, extensions or upper‑level additions.
Pros: Preserves character, often lower cost, sometimes possible to continue living onsite (depending on your scope).
Cons: Layout can be constrained by the existing structure. Hidden defects can inflate costs. You also cannot increase the ceiling height of an existing home. If it’s high, lofty ceilings you’re after, you will need to knock down and rebuild.
Timeline: 6-9 months.
Partial Rebuild
Ideal for: Homes with sections that simply don’t work (e.g. outdated extensions or awkward layouts) while retaining structurally sound areas. A classic example of where a partial rebuild could come into play is an older style Californian Bungalow that has had a poorly integrated extension added in the past.
Scope: Remove poorly designed areas, rebuild for improved flow and function. For example, an entire section of a house and joining wall could be demolished to pave the way for a better-designed extension.
Pros: Greater design flexibility and cost savings over full rebuild.
Cons: Integrating old and new areas can be complex. Not all issues from the current home may be able to be resolved.
Timeline: 8-12 months.
Full Knockdown and Rebuild
Ideal for: Homes with poor structural integrity, inefficient layouts, or expensive renovation/partial rebuild needs. When your existing house is beyond redemption and the money you’d need to spend renovating exceeds the home’s potential new value, a full knockdown and rebuild may present greater long term value.
Scope: Complete demolition, groundworks, and design and construction of a new home tailored to your site and lifestyle.
Before any construction starts on a full rebuild, there are considerable costs in getting your site ready:
Demolition: knocking down the existing home and foundations and taking the waste away.
Leveling: soil testing and re-leveling the ground for the new design to prepare for concrete slabs and retaining walls.
Footings and Foundations: pouring concrete slabs and foundations for the footprint of your new home.
Pros: Complete design freedom, improved site orientation, higher energy efficiency, greater capital value.
Cons: Longer build (12-18 months), higher upfront cost, and temporary accommodation required.
Timeline: 12-18 months.
As with any major project, there are many obvious - and not so obvious - considerations to undertake. As such it’s important to seek professional advice from the experts who have a full understanding of design, construction, and building approvals/restrictions, to assess the renovation possibilities of your home.
Step 4: Factor in Lifestyle and Build Practicalities
Can you remain living onsite during a renovation or partial rebuild?
Are you prepared for the 12–18‑month timeframe of a knockdown rebuild?
Will your chosen approach meet your family’s needs for the next decade?
Step 5: Seek Expert Guidance Early
Choosing between renovating vs rebuilding isn’t just about budgets and timelines. It’s about unlocking your property’s full potential. A professional project feasibility study will give you the best initial assessment on your property, assessing:
The structural viability of your existing home
Design options aligned with your goals and budget
Planning and approval pathways
The Verdict: Find Your Tipping Point
If your home has a strong structure, sentimental value, and only needs targeted updates, a renovation or partial rebuild can transform it. But when extensive repairs limit design potential or cost efficiency, a knockdown rebuild often delivers greater freedom, value, and liveability.
MILEHAM’s architecture and construction team helps you assess all your options, so your investment results in a home perfectly suited to your vision, lifestyle and goals. Book your personalised design consultation today, to determine if a renovation, partial rebuild, or full knockdown is the smartest path for your home.
