Hi Luke, I would first consider the overall feel I want it to have. If you want it to have a real period feel then stick with authentic fixtures. The trend now though is to not do a room or space in a specific period feel. A more eclectic space with some modern touches would be much more fresh.

House has many good features, I love how the bedrooms are divided from the living area, that can be very important if you have young children. I even like how the door to the laundry is screened from the dining area - little things like that are important to me. The toilet in the bathroom would annoy me, but having the second toilet in the laundry would offset that. I think I would be inclined to close off the lounge room as a TV/Media room that would free up the general living area for just living. The outdoor areas look well planned with excellent access from the house. Oklouise's idea of relocating the kitchen looks an excellent idea but plumbing could be an issue here, firstly it would be expensive just to move the plumbing and something to be generally avoided with renovations, and secondly with rooms underneath the house, it may not be possible. As the kitchen is now, opening it more to the living room could be a good idea except I can see possible safety issues with the hotplates being exposed to passing traffic - especially with young children in the house. I agree with David - you do have to think about how you are going to live in the house and the lifestyle you envisage. For this reason, if you do decide to purchase, I would strongly suggest you live in the house for a year before doing a thing. That way the things that aren't working for you will become very obvious as well as things you need or would make life easier making decision making simpler. You will also get a feel for the lighting in the house, where it can be improved and the aspect of the house - what rooms may need warming (south facing rooms) or what rooms need cooling (west facing rooms).

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You have done really well so far. Love the lamp and cushions. Right colour to complement the wood. Find a rug to define couch area and a soft place for toddler to play. Use that and your existing pieces for inspiration. Or start with an artwork. Turquoise and orange colours would be good in small doses. Or gold