Wow! Overwhelmed with all the responses and some great ideas put forward :) I should have probably stated in my first post that I am trying to keep it to a pretty small budget (was thinking of even going down the Ikea route for the cabinetry etc and installing myself). This is because I have spent my life savings on a $810,000AUD house (so don't want to spend more that 15k on renovating I am only 30 years old :)) I do realise I am going to have to spend thousands to get the flooring sorted. Good to hear that you guys think it will be possible to get the wood to match. I am very particular about these things so was thinking not to do it. Responses below in the order they were posted :) Chanop thanks for your help - I think changing the shape of the kitchen to an L or C might have been a good idea when originally designing it but with the middle island already plumbed and with electrics with 2 dishwashers (I will most likely remove one) I think ill just have to stick with it considering my low budget. Is there something wrong with have rangehoods recirculate? Just thought it would be easier as I could do it myself if it wasn't vented outside. I definitely want to get more drawers than cupboards for the lower cabinets - good idea. Was thinking of moving the microwave into the pantry as it has power and we don't use the microwave often anyway. Mrjudsonjames I agree with you on not changing the shape - I really like your idea on moving the sink to the island and i think I will definitely have space if i remove one of the dishwashers that I don't need. Yeah fridge size is definitely an issue with the current space - hadn't thought of storing more food that doesn't need to be refrigerated in a refrigerator - interesting. Fridge wont fit under stairs unfortunately would have been handy - however i plan on having more storage under the stairs (not sure how to execute this yet). Bec - Yep definitely good idea with the sink - am definitely going to try to do get that done :) I'm not really sure what you mean with the half height windows - have you seen an example somewhere you could post? Yep white all the way in this instance - it all feels way too dark at the moment. sstop - not sure whether the wall behind the fridge is load bearing or not might need to get that checked out. However, removing might be a project for the future as I don't have a huge amount of money to spend. Good idea - maybe i will look to see what I would fetch for the freestanding cooker on eBay (it RRPs for around 7K) not sure. I hadn't thought about staggering the joints and this will definitely help - thanks. LouieT - Yeah the layout is a bit of a disappointment - but the terrace house was originally built in the year 1886 originally so definitely going to be some quirks. Yeah I agree on not moving the plumbing going to cost too much. I'm not sure about adding a return as it will enclose the kitchen even more with the bench still there. I want it to have more flow than it currently does. I love the idea of a pendant light! I will definitely have to get one of those over the island - great idea!! dohraime - Yeah as I said to LouiT don't like the idea of removing the island seems like a waste of plumbing and electricity i want to try to make it work even if it's not perfect. Yeah unfortunately the cabinets are of an odd height. Definitely getting new cabinetry to replace them. I am already concerned about not having enough storage so losing those top cabinets to open shelving scares me a little. bissym - WOWWEEE! Your plan really excited me - not sure why when the place was renovated 10 years ago they didn't do it that way would have been WAY better. I am definitely keeping this in mind for phase 2 of my renovations. Not sure how much it would cost to knock down walls etc will get a quote at some point. Now my main focus and problem area - is the kitchen and your plan doesn't effect that area really. Will definitely be ripping of the big curved granite benchtop on the kitchen island as soon as i move in. OK so I hope I didn't forget anyone - and I definitely have got some fantastic ideas from you guys. So my main take home points appear to be currently just trying to sort out the island and fit a sink in it, changing the cabinetry to accommodate a larger fridge, getting floorboards to match and putting up some dangly lights.

I'd consider putting the corner sofa and TV stand in the dining room, moving the stand-alone chair and footstool and tall lamp near the stove as a "reading nook" and placing the dining table in the living room, leaving enough for a walkway from the entry to the current dining / possible living room. In terms of the actual furniture, everything other than the colour of the dining chair fabric looks pretty good. I would start by decluttering and removing anything that isn't functional or which you don't find aesthetically pleasing. I'd personally remove the mirror in the bar as I don't think it gels very well, the tiny framed art near the stove, the art on the wall near the TV as it's too small and hung too closely and the drum kit (unless the drum kit is used on a daily basis). I really like the Marimekko print and, IF you like it, then I would use it as inspiration for adding colour to each of the rooms, possibly even a "feature" wall using the bright blue from the print (although I'm not a huge fan of feature walls). A few minor changes may also help, like replacing the blown bulb in the wall sconce, storing the ironing board somewhere else and taking down the "hanging" glasses in the bar area as they're visual clutter right at eye line height.

try mounting the tv on the same wall, add brackets to secure any cabinets to the wall and toddlers are usually OK with stairs after you teach them to go down steps on their bottoms

Thank you Dreamer, Sadly, it's the wall that is curved. The ledge going down has been packed to start the curve at the ends.. We've knocked out the wall between the kitchen and family and straighten up the other kitchen wall. knocked back the wall between the entry and dining... Not sure who lost the bet when the house was built - the store in the kitchen housed the hot water system and the linen cupboard was 25cm deep!