Should you renovate or relocate?

One of the biggest assets you have is your home equity – that’s the difference between what your home is worth and what you still owe on your mortgage. If you've been in your home for five years or more, you could be sitting on a decent amount.

To get a rough idea, find your home on Trade Me Property to see its HomesEstimate. Then, subtract the remaining balance of your mortgage. Most banks require you to keep at least 20% equity in your home, so your ‘usable’ equity is the amount over and above that.

This pot of money could be the key to your next step. It might be enough to fund a full-scale renovation without taking on more debt, or it could be the deposit you need to buy a bigger, more expensive home that fits your current lifestyle.

Before you decide, it helps to know what your money can buy. Renovation costs can vary hugely depending on where you are and what you want to do.

• Bathroom Reno: A simple refresh could be under $15,000, but a standard, mid-range bathroom renovation in 2025 will likely cost between $20,000 and $35,000. For a high-end, luxury upgrade, you could be looking at $35,000 to $65,000 or more.
• Kitchen Upgrade: A basic kitchen makeover might cost between $15,000 and $25,000. For a more common mid-range renovation with better materials and new appliances, you should budget between $25,000 and $45,000. High-end, custom kitchens with all the bells and whistles will start from $45,000 and can go well into six figures.
• Moving Walls: Want to create an open-plan living space? Removing a non-load-bearing wall is the cheaper option. However, if the wall is load-bearing, you’ll need to factor in significant structural work, which can add thousands to the project. It’s best to get a builder to assess this before you start dreaming.

All costings are estimates. Talk to a registered builder to get a better idea of what your renovation will cost you before proceeding.

Sometimes, a renovation just can’t give you what you need and want.

Selling up and buying a new place offers a clean slate. It’s a chance to find a home that fits your life right now, not the life you had five years ago.

Think less stress and dust from a long renovation, and more "instant gratification". Listing your home could mean finding that single-level place you've been dreaming of, moving to a new community with a different pace of life, or getting a home with the exact number of bedrooms you need without having to knock down a single wall. It allows you to choose the location and the layout, rather than trying to make your current one work.

Chat to a real estate agent to get a better understanding of your home’s market value + what is currently available in your price range.

Write down what you love and don’t about your current home. What would be your dream?

If you’re attached to your location, your neighbourhood, and the school zones, then loving your home might be the best option for you. If you are flexible on the above and think a new house could tick all of your boxes, it might be time for a dreamscroll on Trade Me Property!

Of course, if your dream home for this next stage of life appears on Trade Me Property, you should go for it. If you’re leaning towards listing your current, check out these handy tips for finding your next property.

So, what’s it going to be? Loving it with a renovation that reshapes your home for the future, or listing it to start your next chapter?