Love It Or List It: Is this home big enough for a family?

In the latest episode of Love It Or List It Australia, newlyweds Riley and Kieran have a tough decision to make – stay in their small terrace in the perfect location or upsize now.

Which comes first, the family or the house? Should they wait until their family grows – or should they buy a bigger house now, in anticipation?

Andrew Winter and Neale Whitaker, hosts of Love It Or List It Australia, take a look at this Victorian-era home and offer their advice.

List it: Why now is a great time to sell

This couple loves living in Paddington in inner Sydney, and Kieran says he’d be devastated if they move.

“I just really love the location. I really want to stay,” he says.

However Riley hates the lack of storage and she is sick of the old kitchen that’s falling apart.

“I see us having a family in the future, so I think we’d be better off looking for a place that has a bit more space,” she says.

The two-bedroom terrace is located Paddington in one of the most sought-after suburbs in Sydney where the median house price is now $2.2 million.

So they could sell for a much higher price than they bought it for just two-and-a-half years ago, says Winter.

“In two years, the property rose in value from $910,000 to $1.3 million – that’s a profit of almost $400,000,” he says.

Winter says they could cash in and use the money to invest in something larger nearby.

“This is the perfect first home for you, it got you on the property ladder. It’s made you a lot of money very quickly, without doing any work. So this is the stepping stone to house number two and you would be crazy to not use this,” he says.

Love it: A better home for a growing family

But Whitaker says this house would become a much better home with the right renovation which takes into account the property’s history.

“To me, it’s not just about a space behind its walls. Its location is part of its character.

“This house can be transformed and it can be the perfect Paddington terrace despite its dimensions and the size,” he says.

A renovation would also see the wall between the main living and dining areas disappear.

“Though the footprint of these rooms hasn’t changed, the downstairs area seems bigger. Simply by opening up the space and relaying the floor on one level,” he says.

Plus upstairs the wall between the bedrooms would be moved and the front door would also be relocated.

A new galley kitchen that opens to the garden would be created along with a much bigger bathroom plus much-needed storage.

“By pushing out to the boundary at the rear of the house, we’ve created a beautiful galley kitchen and even squeezed in a new bathroom.

“The bifolds and skylights let the light to pour in,” he says.