Renovate, Upsize, or Downsize? Data-Backed Insights for Your Next Move in Australia

Feeling like your current home doesn’t quite match your lifestyle anymore? If so, you’re not alone. Across Australia, homeowners are weighing up three major options right now renovate, upsize, or downsize each with unique perks, challenges, and financial implications.

Renovating – Stay Put, Refresh, and Reinvigorate

Renovating lets you stay in the neighbourhood you love while giving your home a fresh look. But it’s not always straightforward.

• Permits and approvals can significantly delay projects.

• Even smaller renovations often overrun on time.

• Unexpected cost blowouts due to fluctuating trade and materials prices are common.

On the upside, tapping into your property equity could help fund renovations making the process more achievable without sacrificing location.

Upsizing – Growing Space for Growing Lives

Life changes. So do our space needs.

• First-home buyer loans hit 125,220 in 2024, with a projected 6.5% growth in 2025, showing more Aussies entering the property market—including those looking to upsize.

• The average first-home buyer loan sits at about $554,961, while the average owner-occupier loan is $678,011.

If you’ve lived in your home for some years and built equity, that can become the foundation for your next property especially when paired with a bridging loan to buy before you sell.

Downsizing – Simplify, Save, and Right-Size Your Life

Downsizing can help you shed maintenance stress and unlock lifestyle benefits. But for many Australians, it’s not an easy decision:

• A recent survey found only 19% of empty nesters have downsized, while 69% chose to stay in their family homes. This is often due to emotional ties, financial fears, or concerns about pension impacts.

• Despite this, downsizing can unlock valuable equity especially if you’ve held your property for over a decade offering freedom, reduced upkeep, and financial flexibility.

The Bottom Line

Whether you’re renovating, upsizing, or downsizing, your built-up equity is likely your most powerful tool. Combine this with smart lending options like bridging loans or tailored refinance strategies and you could unlock solutions that truly fit your evolving lifestyle.

Ready for the Next Chapter?

At Two Birds One Loan, we know that every home journey is personal. Whether you want to refresh your current space, step into a bigger home, or simplify and downsize, we’re here with tailored finance guidance to help you make the right move.

Book a call with the Birds today to explore how your equity and lending options can work for your next chapter.