Advice! House renovation or?

Hi guys. Well i've got a 3 bedroom small house on a 794sqm land. Now this house was brought in 1990 so im assuming it was a 70s built. It's a brick house. Now we're thinking of renovating from which wud be spent around 25k( my husband wud be doing most things himself) but tbe thing is the house has 3 bedrooms but its tiny! The master room does not fit the modern day bedroom sets such as mine. Well it does but no walking space what so ever!. (No wardrobes to)  So we were thinking of combing the other two bedrooms and make that a master room, and leave the biggest room( old master room) as a second bedroom. So we'll have two rooms. So the house needs to be chanhed everything frm A-Z were even going to knock down the wall in lounge area that seperates the kitchen and make it a open living area so looks bigger. So new kitchen, new bathroom, flooring, lighting, doors even new fencing(deff need new fencing) plus all the accesories and appliances and split systems etc. practically everything is getting changed.  So im wondering, if its worth doing the renovation, as in result we'll be having two bedrooms left. And we are even trying for a baby. Currently living with inlaws. Use to live in rent. But we are paying off a car loan. Cnt afford to pull money frm bank. So no re building( i wish) or putting the house bank on rent(1200$) and just rent a house so that rental moneh covers my rental.. But i also want to live in my own house not having to worry with rental issues and for being so limited in the house. Ive got two amstaffs who live outside to. What uz suggest?