In this episode we head to the south-eastern Sydney suburb of Malabar, 15kms from the CBD. Here we meet Carl, Kerensa, and their two active kids.

The young family moved to Malabar just under 5 years ago. Previously living on a busy main road in Randwick, they were not only looking for a new house but a new lifestyle offering peace and tranquillity.

Malabar delivers this in spades, with a picturesque 200 metre sandy beach framed with sandstone rocks and cliffs, calm swimming conditions, rock pools, and relatively few visitors. One of Sydney’s best kept secrets, Malabar is a top choice for young children and families.

Like most suburbs in Sydney, the price of a great lifestyle doesn’t come cheap – the median house price range is $2.5M.

The house is remarkably cramped, with Kerensa saying they have to walk in sideways when they go into the bathroom. Adding to the claustrophobic feeling is the lack of natural sunlight towards the front of the house, especially in the small living room. On the back end of the house, they have the opposite problem, with so much sunlight streaming in that it’s unbearably hot during summer unless they close the blinds and crank the air conditioner.

They are at a cross roads - should they Renovate or Rebuild?