Renovating an existing property can help increase home value while saving time and money, while a custom home offers limitless possibilities for personalisation. If you’re thinking about upgrading your house and considering home improvements, you may be asking yourself, do home renovations increase property value?

The short answer is yes, home renovations can boost market appeal and add value. However, the reality is more complex, and the average way to add value isn’t always through every renovation. Renovations can come with limitations, hidden costs, and compromises that can leave you wondering if you would have been better off starting fresh.

So, how do you decide whether to renovate or build? Carefully considering both options will help determine the best course of action for your property. Let’s break it down.

The benefits of renovating your current home to increase value

If you’re considering renovations to increase property value, focus on remodel projects that enhance aesthetics, livability, and structural integrity. If your home has strong foundations, a layout that works for your lifestyle and is in a location you love, a well-planned renovation can offer some key benefits:

Preserving location

If you love your neighbourhood, have great schools nearby for your children or are in a prime location, renovating allows you to improve your home without the hassle of relocating.

Potential cost savings

Depending on the scope of work, renovating can sometimes be more affordable than a full rebuild, particularly if you only need to update key areas like the kitchen, bathrooms, or outdoor spaces.

Faster project completion

While major structural renovations can take time, smaller-scale upgrades are often completed faster than building a new home from scratch.

Retaining character features

If your home has architectural charm or unique design elements, a renovation allows you to modernise while preserving its original character.

What renovation projects boost home value?

Thoughtful renovation projects can significantly increase home value. If you’re investing in remodel home projects, here are the updates that tend to offer the best return on investment (ROI):

Kitchens

A kitchen is usually described as the ‘heart of the home’ and therefore a well-designed kitchen is a major selling point. Luxury buyers look for high-end finishes, premium appliances, and a layout that is functional and appealing. Key upgrades that add value include:

• Custom cabinetry to hide appliances, such as the fridge or microwave. 
• Stone benchtops made of high-quality materials
• High-end appliances
• Smart kitchen technology
• A pantry for added storage and preparation space

Bathrooms

Buyers are drawn to homes that offer an oasis-like retreat in their bathrooms, increasing home value. Consider these upgrades:

• Floor-to-ceiling tiling for a seamless, high-end look
• Frameless glass showers and freestanding bathtubs
• Underfloor heating for added luxury
• Premium tapware and fixtures in striking colours
• Smart mirrors with lighting 

Outdoor spaces

Luxury living isn’t just about the interior, outdoor spaces matter too. Creating a well-designed alfresco area can significantly increase both the livability and value of your home. Key features that add value and home appeal:

• Covered outdoor entertaining areas with features like built-in BBQs or kitchens
• High-quality decking or stone flooring
• Heated pools with landscaped surrounds
• Seamless indoor-outdoor flow with large sliding or bifold doors

Structural and energy-efficient upgrades

A luxury home should not only look beautiful but also be built to last. Smart structural upgrades can future-proof your investment, including:

• High-performance insulation for energy efficiency
• Double-glazed windows for soundproofing and climate control
• Solar panels and battery storage to reduce ongoing costs
• Smart home automation for lighting, security, and temperature control
• High ceilings and skylights for natural light

The limitations of renovating your current home

While some renovations increase home value, unexpected challenges can make the project more stressful and costly than anticipated.

Structural and design limitations

Older homes were built to different standards than ones built today, meaning they may have structural limitations that make renovations more complex and expensive. Issues like outdated wiring, poor insulation, old-fashioned bathrooms or foundation concerns can turn a simple upgrade into a costly rebuild.

Hidden costs and unpredictability 

Renovations often uncover hidden problems like asbestos, termites, or outdated plumbing, impacting your budget. What starts as a bathroom or kitchen makeover can quickly turn into a complete rebuild once unexpected issues arise.

Compromises on space and layout

One of the biggest frustrations with renovating is trying to make a home fit your vision when the property wasn’t developed for modern, open-plan living in the first place. Often, extra bathrooms, a larger kitchen, refreshed layouts, or increased ceiling heights aren’t possible, leaving you stuck with an undesirable layout. 

Is the average value increase worth it?

While some bigger renovations, such as installing a fresh kitchen or landscaping your garden, can add value, the return on investment isn’t always as high as expected. These updates or changes might not align with market expectations, making it harder to regain costs when you sell, leading to disappointment.

It is essential to talk to a professional about the potential impact a renovation can have on your home value, so you can have all the information before making a decision.

The benefits of building a custom home

Designing and building a custom home from the ground up can give you complete creative freedom, as you can ensure that every detail is exactly as you want it,  without having to work around the constraints of an existing property. Also, If you’re considering a significant remodel, it could make more sense to put that budget towards building a new home. 

Here’s why a custom-built home might be the better choice for you: 

Created for your needs, without compromise

When you build a custom home, you’re not working within someone else’s vision or limitations, you’re starting with a blank canvas. Every layout, room, and finish can be tailored to your lifestyle and help ensure a home that will work for you now and in the future.

Built to the highest standards

Older homes often come with limitations, like outdated building materials, poor energy efficiency, and hidden structural issues, whereas a new home should be built to modern standards, meaning:

• Insulation for better energy efficiency
• Advanced technology integration, such as smart security features
• Sustainable building materials that reduce long-term costs
• Premium finishes that last a long time, and look good too. 

Be mindful of these factors when choosing the builder you go with, as a good quality one will build your new home to the safest, modern standards, while a lower quality builder might cut corners. 

Better budget control

Although building a new home may come with a higher upfront cost, you’re ensuring you get exactly what you pay for and are avoiding the uncertainty of renovation-related surprises, which can lead to escalating costs.

It is important to go with a trustworthy builder, such as DA Burke, who will offer clear communication and transparent pricing.

Higher long-term home value

Building a custom house isn’t just about creating a beautiful space, it’s about crafting a timeless investment that offers potential returns. A newly built house is designed for modern living, meaning it will naturally attract more buyers and retain its market property value better over time compared to a house that has undergone multiple remodels. 

High-end buyers look for quality craftsmanship, thoughtful layouts, and premium finishes, all of which can be achieved by building your house from the ground up, with these elements in mind to increase home value.

Making the right choice: renovate or build?

While some home renovations can increase home value more cost-effectively and quicker, they often come with limitations in design and structural flexibility. On the other hand, building a custom home requires a larger investment and a longer timeline, but it offers the advantage of a completely tailored design, crafted exactly to your vision, without compromises.

If you’re weighing up whether to renovate or build, consider the following potential impacts:

• Are you constantly compromising on layout, design, or space?
• Will renovations require major structural changes (walls, ceiling heights, increased kitchen size, extensions)?
• Is your existing home outdated in terms of insulation, wiring, or energy efficiency?
• Would your ideal renovation plan costs add up to the price of a brand-new custom home?

The right choice depends on your priorities, budget, and long-term goals for your home.

Build a home that reflects you

If your renovation budget is approaching the cost of a new build, or if you’re struggling to make your current home fit your needs, it may be time to consider building your dream home instead.

At D.A. Burke Builders, no two homes are built the same. We work closely with clients to design a home that is unique to you, built to reflect your style, priorities, and way of living. From high-end kitchens to modern ensuite bathrooms, to seamless indoor-outdoor living, everything is crafted with precision and purpose.

Whether you’re looking for a luxurious single storey retreat or a stunning double storey masterpiece, we will ensure your home is everything you’ve dreamed of and more.

Ready to explore your options? Contact D.A. Burke Builders today to discuss how they can bring your vision to life.