I was 23 years old and our first home (1982) was $42,000 but interest rates were 21%!!! It was in Otorohanga NZ and mortgages were tough to get. Best decision ever though. We had second hand everything, even using an old beer crate as coffee tables and book shelves lol. Over the years we have owned only 3 homes though, and if we were to start again we have learned to not over capitalise on homes we have bought instead upgrade sooner. Finally we are ebarking on our first new home build ... bettter late than never though definately!

Just like birth, death and taxes, renovation surprises are guaranteed. I think Micheal Bell's suggestion to add a contingency is a good one. Also finalising your design before looking for your builder will save on mid project variations. For those interested in estimating the cost of their renovation before going too far into their plans, try this renovation and extension cost calculator. Good luck. richard@makeovergroup (Melbourne)

Thank you everyone, lots of shopping, many shops seen. I have pulled this look together. I am not sure about the heavy textured throw. Just walked in with it, thinking a white pot with a plant in the corner by the window. I wanted to find the beige colour in the blue cushion, a much darker colour than the plain one l found to the left of it. Take care everyone. Sue

Thanks for all your comments. I agree Retro and Genki and have done just that. He will come to me first with his design however I think like some of the other Houzzers this is a passion of mine that I wish I had have pursued as a career but unfortunately did not and am unsure whether I will go back to study now with young kids. I have worked with my building designer on 2 other projects and we nailed the layout of both. I enjoy reading everyone’s opinions and think that considering all options rather than the first presented is not a bad idea. We have had the master of our previous houses downstairs and my preference is to keep it that way although maybe being back up with the kids for the next 12months may change our mind but I doubt it. I definitely want knock down the current garage and laundry and ideally want an open plan kitchen/living dining with butlers pantry/laundry although it’s a little awkward as we don’t have the hallway to allow a transition point from traditional to modern. That’s why I think the transition will be as you walk through into the current dining room and I would love to be able to see through to the backyard from that front entry. Oklouise, I initially drew up nearly exactly your upstairs option but as dreamer mentioned we are mostly solid brick walls upstairs and my favourite spot upstairs is that front enclosed balcony. Unfortunately the front room upstairs doesn’t get any direct sunlight. I would consider losing the upstairs living as suggested as that downstairs living room could definitely be used for that purpose. The block is approx 14m wide by 39m long. The front yard is 9.2m to the porch and the current backyard is approx 15.5m long. Thanks again for your suggestions!