Is it cheaper/easier but a smaller house and extend or an older house and renovate

My choices currently in the budget, suburb and school zone I would like:
3 bedroom place 1 bathroom (nicer quality) and look to extend adding an extra room and bathroom (i know this will require council approval). On moderate sloping land also if that makes it more expensive. (budget to extend to add one bedroom and ensuite additional to current house)
or buy an old 4 x 2 that is completely unrenovated but will need a complete reno of kitchen, 2 bathrooms and floors. (what would be rough estimates for budget/middle time reno)
This is in Brisbane
Rental for now with possibility to make PPOR due to good schools.

 

I watched two different renos in my street and noted the following: House with new extension required planning approval, took a long time and was obviously costly. The other was a large dilapidated house that was given a major reno within existing envelope. No planning (even though they possibly should have). Very quick job, a few months. Stunning outcome.

The extension by contrast took over a year and just looked like a small house with an add-on. Probably extra hassle as I saw the owners once arguing in the back lane.

 

For the suburb and price range it will either be one or the other. Land component and location pretty much the same.

I am reading great outcomes here in the renovation forum for 30k etc.
It will be mostly cosmetic and will look to upgrade bathrooms and kitchen later

 

Definitely will be renovating later when we plan to move in. As an aside this bigger property has tenants that seem to be hoarders and have the place in a bit of a mess.
We will probably look to change property managers and try and keep on top of cleanliness.
Both properties are in Holland Park 4121 but I feel one is severely underquoted

 

Always buy the better value.

I'd be going for the 4x2 and renovating, it is probably more liveable while you save for painting, carpet, kitchen, bath reno costs

 

Agree with all the above comments. If the house being renovated doesn’t require major structural remedial work (re-stumping or fixing major termite damage etc.) it is likely to cost less and take shorter time compared to an extension project.

 

No question at all...the latter.