@creativelychallenged the paint colours are grey - Luna Eclipse by New Look (paint place) and dulux quarter lexicon for trims the door and stairs are monument grey :)

We have a similar home in a sydney beach suburb. We are in a different position where we have bought ours as a downsized but are just about to restore the old 50s beauty to its former self. We have quotes of around $400000 to gut and change the floor plan which includes 2 bathrooms and a new kitchen and also add internal stairs to the garage and a large deck off the back, lift some ceilings and replace gutters, eaves ect ect ect. Attached are my inspiration boards and what the house looks like now, hopefully in about 4 months I can update you.

Thanks everyone who offered advice. I've attached 2 pics of the almost finished project. Can't show the bed as the picture isn't up yet - my partner went to clean some mildew off the ceiling, didn't secure the A frame ladder and only wearing thongs almost severed his big toe when it collapsed underneath him. So a warning to all! Please don't get up ladders that have not been locked or wear unsafe footwear. The mirror and rug were from Gumtree and I made the curtains myself (thank you Spotlight for a sale on curtain fabric). We're very happy with the results (apart from the hospital visit involved). Statement light fitting also needed at some point.

HU-624382943's comment about speaker placement is important. As far as quality listening goes (whether you like listening to music seriously or want to enjoy fantastic sound when watching movies, you want the speakers on the narrow wall (pointing towards the set of paned windows), not on a long wall. The challenge, of course, will be to get them sufficiently spaced, since you have the bookcase on the right and the cupboard (with or without doors) on the left, as well as the door to the room itself. (That door looks uncomfortably close to the cupboard doors, incidentally.) Unless you choose to suspend your directional speakers from the ceiling – which could be an option – you'll probably be limited to the width of that central section of wall, i.e. immediately to each side of the TV.