Differences between an extension and a renovation

One of the first things you need to decide when planning any sort of home improvement project is what exactly you hope to accomplish. Are you simply trying to update the look of your home, or do you need more space? These two goals may seem similar, but they require very different approaches. Here, our specialists at Capital Building take a look at the key differences between home renovation vs extension in Melbourne, so that you can make the best decision for your needs.

What are Home Renovations?

home renovation is the process of making changes and improvements to a home. This can include renovating an old home to make it more modern and up-to-date, or it can simply be a matter of repairing the damage that has been done to the property over time. Home renovations can be as small as painting a room, replacing a kitchen, or as large as gutting an entire house and starting from scratch.

Home Renovations: Pros & Cons

Home renovations can be a great way to improve your Melbourne home’s value and functionality. However, they can also be expensive and time-consuming. Here are some things to consider before getting started:

  1. Increased Home Value: Renovations can increase the value of your home, especially if you update outdated features or add new square footage. This can be helpful if you plan on selling your home in the future.
  2. Improved Functionality: If your home is outdated or no longer meets your needs, renovations can improve its functionality. For example, you might add an extra bedroom or bathroom, or update the kitchen to make it more spacious and functional.
  3. Customization: Renovations allow you to personalise your home and make it truly your own. You can choose materials, finishes, and fixtures that reflect your taste and style.


  1. Cost: Depending on the scope and scale of your project, home renovations can be expensive. If you’re on a tight budget, you might need to finance your renovations or wait until you have saved up enough money to pay for them in full.
  2. Time-Consuming: Renovations can take weeks or even months to complete, again depending on the scope of the project. This can be disruptive to your daily routine and cause stress for you and your family.
  3. Difficult to Resell: If you customise your Melbourne home too much, it might be difficult to find a buyer who is willing to pay your asking price when you eventually sell. It’s important to strike a balance between personalisation and resale value when planning your renovations.

What are Home Extensions?

A home extension is an additional structure that is added to an existing house. This can be anything from a small addition, such as a porch or sunroom, to a larger expansion, such as an extra room or second story. Home extensions can be used for a variety of purposes, including increasing living space, adding value to the property, and improving the look of the home.

Home Extensions: Pros & Cons

Adding extensions to your Melbourne home can be a great way to increase living space and improve your property’s value. But there are also some potential downsides to consider before starting any work.

Here are some of the key pros and cons of adding an extension to your home:


  1. More living space: This is the most obvious benefit of adding an extension to your home. If you find yourself constantly running out of space, then an extension can provide that all-important extra room.
  2. Improved property value: As well as providing you with more usable space, an extension can also add significant value to your property. This is especially true if you choose wisely when it comes to the location and size of the extension.
  3. Greater flexibility: An extension can give you much more flexibility when it comes to the layout of your Melbourne home. For example, you could use an extended kitchen as a dining room or create a new bedroom in an unused loft space.


Cost: One of the biggest downsides to adding an extension is the cost involved. Depending on the size and scope of the work, an extension can also be an expensive undertaking.

Planning permission: Another potential obstacle to consider is planning permission. In some cases, you may need to obtain permission from your local authority before starting any work on an extension.

Time: Further consideration of extensions is the amount of time they can take to complete. Depending on the size and complexity of the work, an extension could take several months (or even longer) to finish.

Renovation vs Extension: Which Is Right for Your Property?

Ultimately, the best choice for you will depend on your specific situation and what you hope to achieve with your renovation vs extension.

If you’re simply looking to update your Melbourne home and make some cosmetic changes, then a renovation is likely the way to go. A renovation can be a great way to breathe new life into an older home, and it can be done relatively quickly and affordably. However, if you’re hoping to add some extra space or make more significant changes to your home, then an extension may be the better option.

An extension will obviously cost more than a renovation, and it will also take longer to complete. But an extension can really transform your home and make it much more liveable. If you’re planning on starting a family or entertaining guests regularly, then an extension may be the best way to go.

When it comes to home extensions and home renovations, you want to make sure you find the right builder for the job. After all, this is a big investment, and you want to be sure that your home is in good hands. Capital Building has a long history of helping property owners across Melbourne and wider Victoria create the home of their dreams.

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