Anna and Simon Rawlins bought their first home, a historic terrace in Sydney’s inner west, when they only had one child in tow.

The couple bought a house all geared up to renovate it, then kids came along.

Now they face a common property dilemma: renovate or sell?

Can this first home even be transformed into a forever family home?

Simon loves the time-worn house and thinks it can grow old gracefully with the family.

But with the property’s claustrophobic feel, crumbling ceilings and damp, it’s not hard to see why Anna is missing a sense of pride in her home.

“We get invited to friends’ places a lot but we don’t tend to return the favour as I’m embarrassed about our house,” says Anna.

“We’ve definitely outgrown it.”

Andrew Winter and Neale Whitaker hosts of Love It Or List It Australia, take a look at the property and offer their advice.

List it: Why now is a good time to sell

As with many historic homes, the original layout doesn’t lend itself to modern family life.

“I know I can find them somewhere bigger, better and in an area they love,” says Winter.

“I genuinely think they should move out of this house.”

If the couple decides to sell up and move on, they’re in the great position of living in a highly appealing suburb so finding prospective buyers shouldn’t be hard.

Rozelle in Sydney’s inner west is a growth suburb that definitely has a lot going for it.

The median house price for a two-bedroom house in Rozelle is currently $1.139m.

This heritage terrace in need of some work is currently worth around $1.25m.

Love it: Why sticking with this home is a smart move

Despite this house feeling dark, cramped and rather dingy, there are some redeeming features, says Whitaker.

Namely, the property’s original features including beautiful wooden floorboards and ornate ceilings and, of course, there’s the excellent location.

“The whole house is begging for an update,” says Whitaker.

“But especially the master bedroom, kitchen and lounge. It’ll definitely be a huge challenge.”

Improving the overall flow of the house, creating a proper living area complete with a separate lounge that feels connected to the kitchen, and reviving all the bedrooms and the outdoor area would help totally transform this run-down terrace.

“Bringing the love back into this home is key,” says Whitaker.

“Likewise playing to the property’s strengths and maximising the light.”

“This property has the potential to transform from a project waiting to happen into an inviting modern family home.”

Anna is all for giving the house a total makeover with the end goal of selling it at a profit and upgrading to somewhere bigger, while Simon wants to stay and reap the benefits of a revamped home that he knows and loves.

So will they stay or will they go?

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