Move or Renovate? What Melbourne Families Need to Know in 2025

When your home starts to feel too small, outdated, or no longer suits the way your family lives, one big question comes up: should we renovate, or should we sell and move?

At Dreamline Homes, we help families in Melbourne’s North-East weigh up this decision every week. The truth is, it’s not always just about money. It’s about location, lifestyle, and the long-term value you want to create for your family.

Why Renovating in Melbourne’s North-East Makes Sense

For families like Mark and Wendy in Ivanhoe, renovating often makes more sense.

Location is irreplaceable
If you’ve secured a home in Ivanhoe, Alphington, or Fairfield, moving often means compromising on neighbours, school zoning, or the community you’ve already built. Renovating allows you to stay connected to what matters most, while upgrading your lifestyle at home.

Financial clarity
A full extension and renovation in Melbourne’s North-East typically ranges between $500k and $1.2M+, depending on scope and finishes. Kitchens generally start at $50k, bathrooms at $30–50k, and in luxury builds, premium joinery can account for almost half the budget.

By comparison, selling a $2M property and purchasing a $2.5M one could cost:

• Stamp duty (Victoria, 2025): approx. $120k–$150k (Vic SRO calculators).

• Agent’s commission: typically 1.8–2.5% → $36k–$50k on a $2M home.

• Marketing & auction costs: usually $8k–$15k.

• Legal, conveyancing & moving: $10k–$20k.

That’s often $175k–$230k in transaction costs, before you’ve even renovated the new property to suit your family.

Tailored to your family
Renovating means designing a home around your life — whether that’s a bigger kitchen, a butler’s pantry, more bedrooms, or indoor–outdoor living. Instead of adapting to someone else’s floor plan, your home adapts to you.

When Moving Is the Better Choice for Melbourne Families

There are times when moving is the right decision.

Site or planning constraints
Some homes simply can’t be reimagined the way you’d like. Heritage overlays, flood zones, or tight blocks can limit what’s possible and make extensive renovations cost-prohibitive.

Lifestyle shift
Sometimes it’s not about the house at all, but about the life you want to live. Downsizing, a tree-change, or moving closer to extended family can only be achieved by starting fresh in a new location.

Budget vs outcome
If the scope needed to achieve your vision pushes well beyond your comfort zone, buying a property that already meets more of your needs may be the more practical path.

Renovating in 2025: What Families Should Know

The biggest cost driver in renovations isn’t the builder’s margin — it’s your selections.

Whether you choose a $50k kitchen or a $150k kitchen, the builder’s scope of work doesn’t change. The same applies to appliances, tiles, or cabinetry. You shouldn’t be penalised for investing in premium finishes, but you should understand how each decision impacts your overall budget.

At Dreamline Homes, we walk families through selections carefully, so your renovation is planned to suit both your lifestyle and your budget.

Real Example: Renovating vs Moving for a $2M Ivanhoe Home

Mark and Wendy own a $2M home in Ivanhoe. Their choices looked like this:

If they moved:

• Transaction costs of around $200k.

• A $2.5M purchase may still require renovations to suit their family.

• Possible disruption to school zoning, community, and lifestyle.

If they renovated:

• Invest $800k–$1M in an extension and renovation.

• Achieve a luxury kitchen, multiple bathrooms, custom joinery, and modern indoor–outdoor spaces.

• Stay in the neighbourhood they love.

Side by side, renovating can often deliver more lifestyle value for less total outlay.

The Emotional Side of Moving vs Renovating

Numbers matter, but so do feelings. Renovating means building on the memories already made — the street where your kids ride their bikes, the neighbours who water your plants, the school you walk to each morning.

For some families, that sense of belonging is priceless. For others, moving is about a fresh start and new opportunities. Both choices are valid. What matters is having clarity.

How Dreamline Homes Guides Families Through Move vs Renovate

Our role isn’t to push you in one direction. It’s to give you the whole picture, so you can make the right decision for your family.

• Feasibility first: We assess your property, site constraints, and overlays.

• Transparent costings: We break down where your money goes and help compare renovating vs moving with facts, not guesses.

• Lifestyle-led design: We plan around your milestones — whether that’s finishing before Christmas, before the school year, or in time for a major event.

Frequently Asked Questions: Move or Renovate in Melbourne

Is it cheaper to move or renovate in Melbourne?
It depends on your circumstances. In Melbourne’s North-East, major extensions and renovations usually range between $500k and $1.2M+, depending on scope and finishes. By comparison, selling a $2M property and upgrading to a $2.5M property can cost $175k–$230k in transaction costs alone, before you even update the new home. Renovating often delivers more lifestyle value while preserving the suburb, schools, and community you’ve already invested in.

How long does a major renovation take?
For a $500k–$1M+ extension and renovation, allow around 9–13 months if no planning permit is needed, or 12–24 months if permits are required. At Dreamline Homes, we plan backwards from your family milestones — whether that’s moving in before Christmas, before the school year, or before a special event — so your timeline is realistic and life-focused.

Will renovating increase the value of my home?
Yes, when it’s done strategically. Well-designed extensions, kitchens, and bathrooms add strong value, especially in high-demand suburbs like Ivanhoe, Alphington, and Fairfield. Our expertise in blending modern design with heritage overlays ensures your renovation not only lifts market value but also respects the character of your existing home.

When is moving the better option?
If your block has severe site constraints — such as heritage restrictions, flood zones, or unusually tight access — moving may be the more practical choice. Likewise, if your renovation goals would push far beyond your budget, or if your lifestyle has shifted toward downsizing or relocating closer to family, moving can make sense.

How do I decide between moving and renovating?
Start with clarity. Look at your property, your budget, and your long-term lifestyle goals. At Dreamline Homes, we specialise in guiding families through this decision with feasibility assessments, transparent costings, and design expertise that balances old and new. That way, you can move forward knowing exactly which path is right for your family.

Behind the Build

So, should you move or renovate? In Melbourne in 2025, there’s no single answer. But when you weigh the true costs, the lifestyle trade-offs, and the long-term value, renovation often delivers more without giving up the suburb you love.

At Dreamline Homes, we don’t push families in one direction. We give you the clarity to make the right decision for your budget, your lifestyle, and your future.

Weighing up your options or ready to reimagine the home you already love? Step Behind the Build with us and start the conversation today.