Set the budget first and stick to it. To not follow your budget is not good for your mental health, it will seriously drive you crazy and can be overwhelming for even to most staunchest!

This will determine if you can knock down and build new, major renovation or just fix up the outstanding maintenance issues (that almost every house has...).

It can be easy to trapped into the 'lets just do it now' scenario, get concept plans done including your wishlist items then find out that you can't afford it. Many will then sell up and move... to another place requiring the same works. I see it regularly unfortunately - people wish listing themselves out of a renovation when really most just need a fresh kitchen and bathroom and getting the maintenance problems fixed!! K.I.S.S.

Get some tax advice on the Renata option first so you are fully informed, it will attract capital gains if you ever sell.

What stands out to me is that you are not keen on staying on your block. SO there is no point building something else on it if you are not happy with the neighbourhood. If you are still travelling and building careers, your ideas of a "dream home" could change in the next few years, you never know. Post some pics of the spaces that you are living with right now and we can all offer some pointers to making it a better space for now. I love my house now we have cleaned out all the excess stuff, put sentimental stuff in storage, repainted, moved furnishings around and did some light renos ... a shame we have it up for sale as I know my mental health has been greatly improved by the process. BUT we dont like the location anymore, and there is nothing we can do about that -- so it is worth doing some soul searching about what is really bothering you about the existing property and location...hope that ramble makes some kind of sense ;)

You're seem to be at a stage of life that some of these big questions are yet to have clear answers. The answers will come, but really only you are in the position to answer them. Nobody can tell you whether its better or not to stay or move or build this or that, that's totally personal preference and about weighing up your priorities, options and goals for your home. A dream home is always a lovely vision, however for some people a dream home isn't always brand new, it could be pre-loved beach shack with an amazing view, or for others it could be a penthouse apartment, or for a large family a sprawling farmhouse on land. It really depends on the individual person/family. Perhaps focus on the lifestyle you seek and then begin working towards that. Whether it's building new or renovating/extending etc it ALWAYS comes down to decisions around money and balancing various factors such as location and the type of house/home/lifestyle you seek. You may decide it's good to keep the property you have as investment, and then move through different homes as your family grows. Alternatively, you may decide you want a large family and wish to build a larger home you can grow into. It's not right or wrong stuff, but if the answers are yet to crystallise, it's better to not to pressure yourself into making big decisions that you're not ready to make. Continue thinking it through, looking around, researching and considering your options. Best of luck PD :)