Hello Kathy, what beautiful floors you have.....too lovely to totally cover. I think you're on the right track using two large rugs which will delineate the two usage areas but still show off a bit of that pretty timber. If you can make the rugs big enough to allow a nonslip path for your dog, so much the better. lhh

Other colours that work with red are turquoise, apricot, peach, any blues, yellow, even some pinks and greens. (Look to gardens for inspiration, or Old Masters paintings). I'd find patterns with combinations of those, or Vys colours, in a rug, and chairs or cushions.

Can we please see a photo of the room from different angles! Might give us a better feel of the room.

imo the biggest challenge/cost would be removing all those big solid walls, changing doors and windows and repairing ceilings and not the extra plumbing (new bathrooms and kitchen cabinets, fixtures and appliances cost the same regardless of the extra few metres of pipes) and a new location can make the most of the available space but it can sometimes be more cost effective to add an extension rather than attempting to squeeze too much into an existing building but you need an engineer, builder and plumber to give expert advice on site ... better not to assume that one option is better than another but collect a variety of ideas and ask for quotes to compare actual prices but do you have a realistic budget? i would expect to pay at least $50,000 for a modest new kitchen and bathroom in the same locations before removing any walls or adding an extra bathroom and new laundry and the combined ens/wiw is too small and would be better to have a good sized ensuite with biw and there's not enough space for a bigger island without compromising space in the family dining area...there are so many different options but we need more info...are there any good or bad views, what is the length and width of the block, is there a garage, is there car access into the back yard, what is the distance from the house to each boundary, describe your climate, where is north on the plans, how many steps are there from the back and front doors to the ground, does the block slope and in which direction, how much headroom is under the house and in the roof space...is there any potential for an upstairs, downstairs or an extension into the backyard?