I am assuming the $150k isn't for additions , as you won't get much , but conversely , I wouldn't spend $150k or even $50k doing too much to it now .

First things first -- what is the land worth , as a percentage of the total price ? My gut feeling is that , if its the 'best' street , then the land is worth more than 50% . If so , a demolish and new build will pay dividends and/or get you exactly what you want , at some stage in the future .

With that in mind , maybe rugs instead of new carpet would suffice for 5 years or whatever your plans call for ?

In that case , landscaping and fences , if done intelligently , would be a good first step , as it will improve this place , and mean there is a certain established look if you do a new build .

By the plants , and the boat , I assume it is near the beach ? White with blue works , or white with a warmer colour like orange or yellow , so stick to that for tidying the outside -- tidy or repaint the white , then everything trim , such as the veranda , the gutters , the screen door , the canopy stripes , the front and rear carport edge , etc , I'd do a mid blue ( or bright citrus orange or sunshine yellow ) . Then the base of the terrace I'd do in a lighter blue or orange or yellow . The wrought iron I'd do in a slightly metallic charcoal .

Do a rock garden , with 1 or 2 big feature rocks as well as the usual small rocks , and some of your plants , to look 'rooted' and more permanent . But I'd also have at least 1 larger Ali Baba pot in a glaze the same as your trim colour , on the terrace , just to reference everything .

Inside , do what you like , on a budget . Wallpaper one feature wall , one room , the entire place if you want . Paint one feature wall , one room , the entire place . Things like LED downlights I'd be reluctant , especially if there is asbestos , but things like 'designer' stainless or similar lights aren't all that expensive , and add to the feel . Same with paintings and prints , rugs , furniture -- there is a lot you can do to hide the worst features .

Draw up plans now for the future extension, so that you are not paying to undo something later. First for me would be to remove all the rubbish sitting around, do any essential reairs then repaint.

Agree. Rubbish first, then if you haven’t get an expert in to check the house foundations and tell you what all’s are loadbearing. If you can get a chip of plaster to send for asbestos check. Do a check for any leaded paint. Then you know your base. Get a plan for future extension going
Then start some minor improvement incl adding some screening of the foundations at the rear.
Once you have a plan for extension, you can start replacing things like windows gutters and siding if they need it and will not be affected by later works.
I just wouldn’t spend 150k and then find out you have to tear the whole thing down and complete rebuild. So homework first.
Good luck. It can be done

much as i love your little cottage if you need a bigger home i would research options for a new build and plan to demolish the existing as there's no value in adding an extension to an unsuitable building..eg do you want a garage, extra bathroom, bigger kitchen, outdoor entertaining areas'?...most improvements are blocked by the existing house but new paint, window and floocoverings, maybe carefully remove the wall between kitchen and living (consult Govt asbestos advice) and maybe flat pack extra kitchen cabinets across the end of the living area to increase storage and work on the garden and enjoy your great little house while you save and plan for your long term goals

Good point okl. Without a driveway down the side or rear access getting equipment and materials down the side is more expensive due to labour. So I would agree demolition is likely more cost effective.

Thanks for your feedback, everyone. We had briefly considered rebuild but thought it might be too big of a project but it seems like it will be the best option for the long run. Lots of ideas for how we can freshen and declutter the space in the meantime! Thanks again.

Plant some trees judiciously now and they can be maturing until you're ready to extend or rebuild. Paint the front window frames a lighter colour so the house doesn't look so much like a face winking. My grandparents' house had the exact same layout, so I can picture just how teeny it is inside! I'm sure you can make it work with some small profile furniture and a well organised storage system.

Cute house, these little cottages are really great little homes mostly. They are just little. For best value for money I think you could make gains here....

• Remove the awning. Change the verandah roof so it's more sympathetic to the house.
• If budget allows change out the carport skillion roof for a nice low gable.
• Paint the trims the same colour as the rest of the house. In a house this small keeping trims neutral will help it appear more substantial rather than pokey.
• Put a new rear deck on that goes all the way across the back of the house and is at least 3.6m wide. That will increase your living space dramatically in summer. Use a cafe blind or louvre roof to allow full sun in winter. The cafe blind will be cheaper overall as you may not need a DA for the deck without a hard roof structure. Depends on your area and council but in general certain decks without solid roof can be exempt development. Of course if it's a high wind area louvres will be better.
• Use freeform and oval garden beds in the front yard with a path that winds in between them to the front door. Adding informal interest to the garden will make the house appear more substantial and add interest and detail. The home is fairly plain. Use any style of planting that appeals, architectural foliage, floral, low maintenance etc. Just ensure you have nice varying heights and interesting foliage colour. A tall shrub or two would be good.
• The backyard is already quite shaded so either create a woodland garden or perhaps have some of the tree's out the back pruned to enable more light. Plan out your outdoor spaces, veggie patch, relaxation zone, fire pit etc and define them with plantings.
• Gravel paths are cheap and effective.
• I would also be inclined to create a euro laundry and steal the existing laundry space for your kitchen.

There's a school here which now has lead contamination because their window replacement wasn't done with enough precautions, and asbestos which you wisely assume is throughout will add to the costs of anything (I was horrified when I saw an otherwise lovely real estate listing of an old cottage with added open shelving in the kitchen, attached by drilling into what I recognised as asbestos sheeting, I remember it from the house I grew up in but I think people these days don't always think about it) so I would do little more than tidy and declutter, and save and plan for the replacement building. How bad condition is the paint in, can you easily paint over or does it require sanding?

asbestos removal for a space the size of inside your laundry cost us about $4000 5years ago without the cost of new carpentry and materials

Interior and exterior paint not too bad so a clean and then paint should be ok. I think removing awning will also make the house look cleaner and more balanced. The a/c unit hanging out that window is a bit of an eye sore so might look into how to remove it and replace the window.

Is it worthwhile doing the landscaping out front if we do a rebuild down the track? It might be 5-10 years away. Does anyone know how the demo process with this sort of house?

research local plants and make gardens that have moveable plants and packed granite or gravel paths edged with railway sleepers etc and keep any permanent planting down the back and check with local building companies for a knock down rebuild as that would be the most economical option and 5 years will pass very quickly while you research options and plan for your new build...start with the dimensions of the block and direction of north and see what floorplans are available (including YourHome.gov.au for excellent advice and plans for passive Solar design for any area in Australia

Unfortunately demolishing is not as simple nor as cheap as you might believe. If your house is indeed asbestos, whether your demolish or renovate you WILL pay for asbestos removal. You can either pay for it in a small portion of the house or for the entire house. They can't just take an earth mover to the structure and collapse it, if it's asbestos. All asbestos panels need to be carefully pried off, wrapped and then you will pay for asbestos burial in an approved site. Removed housing is so popular these days because the owner is seeking to avoid the very high costs of demolition by selling the structure whole and making it someone else's problem to remove. If your house is asbestos though, they cannot put a massive saw through the middle of the house to get it onto a truck for obvious reasons. So most house removers will not touch a fibro cottage.

Don't forget there is always the option to extend by adding a pavilion on the back that isn't built onto the house, but connected via a breezeway, open-air or louvred. It will save a lot of hassle and possibly expense. Given the right architect, it could look very nice that way. You could then have the original house converted to being a bedroom space and have your living area's in the new pavilion. Another way to think about it. This option would also allow you to occupy the house while works were being carried out.

Spend as little as possible to make it habitable and presentable. Take your time to consider demolition vs renovation.