I definitely agree that once you live in a home for a few months you will have a good idea of what works and what doesn't. Assuming that the large room with the floorboards is the living space and the room with the slate is the family room, would it work if you knocked out the wall between the kitchen and the family room, rather than just having a pass-through? You could then leave the fireplace wall alone and put a bank of fridge, pantry and wall oven(s) on the kitchen side. You can have a large return (peninsular) between the side walls. This way you have a very open view into the family room where your children will probably spend a lot of time and you get to keep the fireplace or some version of it. If the rooms will not be used in this way, you would be better to remove the fireplace and the wall - but only if you can find another wall in the kitchen to relocate the fridge, etc. From a design perspective, while the kitchen is dated the timber can be painted and new knobs or handles added. You can have the benchtop resurfaced and a new splashback possibly installed over the existing one. However new kitchens would have more drawers than doors. If there was detailing on these it is more commonly a very simple Shaker profile that suits the very popular Hamptons style. Otherwise they are plain with shadowline or push to open. My advice would be to live with it for a while and then as soon as your budget allows get a new kitchen as part of the bigger renovation.

you are super-patient!!! :) :) thank you :) I'm so sorry but I do actually have a couple MORE thoughts!! argh! there are just so many different options.... and this is a bit of an all consuming puzzle to try to solve. here they are: 1) study could become main bathroom - leaving new Bed 4 as per plan since it is bigger & a better size for guests. in this option, some area could be stolen from the study to boost ensuite size - even if it just made the ensuite 1 full metre. Ideally not requiring study window to change. 2) WC could potentially be separate either within this space OR at the back of the old kitchen (allowing for the remaining, longish hall wall to be shorter again) oklouise you may think some of these ideas are not very workable & I'd be so glad for your feedback & comment (and anyone else's comments as well), it's really so incredibly helpful - unbelievably helpful - to have everyone's input. i'd love recommendations on which ideas & options might work best for that balance between function & budget

Just to confirm I have taken the great ideas presented here as advice only and have no intention to do some dodgy diy reno's. With the exception of a couple of quirky exposed timbers as you can see in my pictures there are no other exposed beams. As you can also see from the pictures there is a large roof space on the right (east) side of the house but the ceilings themselves are flat with a slight dip on the north wall. Based on my own personal experiences I would have to agree with Two's Company that there is a tendency towards rendered brick in WA (although there are still many exposed brick houses in my suburb) while double enclosed double garages are also highly desirable. I would also agree that toilets within the main bathroom and non traditional laundries may be considered unusual by many (but not all). Ensuites with toilets however are still very common. Also due to the nature of our work we would prefer the laundry separated from food/kitchen area. For a 4x2 house it is only around 155m2 excluding carport/alfresco which makes the rooms feel quite cramped, hence the desire to open up the family room. However, as Two's Company suggests we will need to first get a builder/eng in to check load bearing walls etc as this will undoubtedly affect what we can achieve within our budget. Having said that I still excited by many of your ideas and with luck hopefully can work some of them into the budget. Cheers all :)

answering your questions: change the sliding door to a bench height sliding window and use the salvaged sliding door in the western end of the dining room where the best entry position is for the deck, you MUST have a proper legal drains do not consider anything else...the drain pipe for the garage laundry can be on top of the concrete floor, behind the washing machine and through the sink cabinet and/or under built in storage and only needs a few cms not a whole floor and no stepped up area that you would see or trip over.. the laundry can't be in a separate room as there's not enough space for a separate laundry without compromising the size of the garage...a laundry cupboard 80 cm deep is enough for the washing machine (allowing for the drainage pipe) you could use the old line cupboard to store anything you want but it's not cost effective to change, the entry foyer is already as big as in many modern homes and there's generous flatpac biw space in the small study.... the family bathroom is 2380 x 2370 (ie the old study minus 1m for hall way and wall thickness and, arranged exactly as shown to allow for the wide window there should be space for a bath up to 1800 x 750, vanity about 1200 x 500 and shower space 1200 x 800 and leftover space makes the small linen cupboard with the door deliberately opening towards the shower to use the back of the door for hanging racks for towels and clothes....btw i understood your priority was maximizing separate sleeping rooms and minimising costs...my last plan has five separate sleeping rooms plus the lounge with sofa bed totalling sleeping places for at least 10 people plus the potential for bunks in the garage so you need to decide what is most important and where you're prepared to compromise