That looks great, good on you for getting rid of the glass blocks, love Seuss and showcasing the rock collection is an awesome personal touch.. Awesome job!

Lighting is so much about personal preference. There is a huge resurgence in the market for antique style light bulbs, and done right, they are cool. Why these vintage style lamps were made in LED is beyond comprehension. Other exposed bulb types in hip and traditional clear fixtures can bring a nice sparkle to a room as as decorative accent, NOT for work lighting or reading (even menus)! My rule of thumb is "a light bulb should never hit you in the eye". I cannot stress enough the importance of the right light bulb in the right fixture by design. I have neighbors with those clear pillar lights for lighting outdoors. The big box stores are full of them. When I drive past this house on the way home, it nearly blinds me. It creates disharmony. It is not beautiful, it is offensive to my eye and my psyche. I would close my eyes going by if it weren't unsafe. Well designed, proper lighting creates an experience, subliminal or otherwise. If you are not glaringly aware of lighting in a room after you appreciate the ambiance, a good designer was at work.

Thanks everyone for your comments so far. Some great points have been made and I'm going to take each one of the away to have a think about. In the meantime, I've asked my draftsman to provide me all the measurements to existing and proposed so I can share it here as soon as I get them. Some more info: We're located in the northern suburbs of Melbourne. Our budget is approximately around the $200k...this is so we don't over capitalise on the property. We thought about building to one boundary because we are of the thinking that we need more width to achieve the space we want. As a guesstimate, I believe the block is 12m or so wide. Each lane way is approximately 1.5m (3m combined) which only leaves us with an internal width of 9m (minus walls). We chose to explore building to the eastern boundary because existing utilities such as hot water system, ducted heating are already setup there. Moving it to the western boundary would cost $$. The eastern laneway has nice new concrete paving and allows us to more easily access it from our carport.The other reason for potentially building to the east is because we're the 2nd last house on the street (near a corner). We get a bit of traffic on our street but more so on the street parallel the western wall. I thought it would be more peaceful moving the house away from the traffic and noise rather than towards it. Also, the addition of the dining area (connected to kitchen and alfresco) will give us a bit more privacy from the street (parallel to western wall) when we're out on the alfresco/deck. Just my thinking but happy to get some further feedback. We're happy to consider keeping the current building boundary if we can achieve the design we want etc. I've attached a few pictures of the existing low ceilings towards the back of the house. The pics show the ceiling from kitchen and towards the back door (curtains are closed). The ceiling is about 2.4m and you can see the exposed beams which makes the ceiling feel even lower. I'm only 1.6m and I can touch them with my finger tips if I try... Whether it's a full knock down or increasing the height of the roof, I think it's the one thing we're about improving/removing. Hope that's some more info for everyone to go off... Thanks again for everyone who has already replied and made some great points. Cheers

It is a great improvement . However I always laugh at all the before and after photo's on a lot of renovations on Houzz -- take the before photos on a dark day with the lights off ; do a reno ; take the after photos on a sunny day with every light ( and flash on the camera ) , and say how bright and breezy it looks ! It's like every weight loss 'con' -- the before photo in frumpy clothes with no smile and minimal lighting -- the after in a bright outfit , huge smile , feet 2 foot off the ground grabbing up for a beach ball , with lots of lighting !