Ask yourself “why do I want to change how or where I live”?
Your present location works well for you, so a makeover or renovating existing home is possibly a great option. Obviously you recognize the increased cost per square meter of renovating compared to building new, and while a renovation will allow you to stay in the present location, there will be design restrictions depending on the layout and age of your present home.
Many have found the most realistic solution is removing the existing home, then, with total flexibility of design and control over the cost per sq m, design and build their dream home right where they now live.
Check, that if you later need to sell and relocate, renovation costs will not make it difficult to sell at a fair market price due to over capitalization.
If possible, remove emotional attachment to your home, and as a final check, compare the extra cost and inconvenience of renovating, to demolishing or selling, and building new.
Watch for step 3