What will bedroom 2 be used for. If it is an office space, then sure. But as a bedroom it is in the middle of the living and will not be private. In either location, it is not private.
The bed 3 and 4 are small and once some storage solutions get installed, they are suitable for a single bed. If they are for children, then the floor space will be used for playing, since you don't have another lounge.
Do you need two doors in the laundry. Either, have one from the hallway, and use the laundry as that with access to outside. Then the wall in the kitchen can have a narrow shelf for pantry items.
Or only have the door from the kitchen. At the moment precious space is taken up by a walk way.
The bathroom for minor bedrooms is extremely tight.
How many people would be living or staying at this home? A separate toilet would be beneficial if every bedroom has occupants.

Given that this a budget plan, are you sure you can make changes without exorbitant costs?

I think as a first home buyer you really need to consider if you need four bedrooms? The house is poorly proportioned as far as common living space to the number of bedrooms. Sure a four-bedroom home sells for more than a three-bedroom home in the future, but how long until you sell, and how much difference is there in cost between a 3 and 4 bedroom in your neighbourhood? Household sizes are getting smaller with more singles and couples, and sometimes the 4th bedroom is a luxury that often ends up as a junk storage room.

Depending on the number of people in your household I would definitely sacrifice Bedroom 2 to make a very generous and comfortable living area, which would make a better-connected kitchen and more natural light into the middle of the home. The wasted circulation space between the kitchen island bench and bedroom 2 becomes living space.

Open Plan Living/Dining · More Info

For a lot of potential buyers in the future a large living space with lots of natural light is a better buying feature than a 4th bedroom, a compact living area and a dark kitchen!

Best of luck with your considerations,

Dr Retro of Dr Retro House Calls and Dr Retro Virtual Visits

Thank you for your inputs, really appreciate it.
I agree with the waste space between the island bench & BR 2, hence I was thinking of moving it outta the way to let some light in.
The BR 4 is basically more like a formal living. BR 3 more like a guest BR & BR2 for kids play area etc. so, if I was to move the BR2 will it help with the natural light or what else can I do to make the most of the north facing kitchen & living space?
Thanks again!

@bigreader that should be fine. Based on my agreement with the builder.

@dreamer thank you so much
BR3 has inbuilt storage, forgot to mention.
BR4 is more like a formal living
The laundry is more like a pantry than a laundry 😬
Just the mrs with 2 kids at the moment.
So, if there’s a house next door I am not sure how much impact it’ll have on the sunlight from the northern side & any ideas to offset that?

Will moving the BR2 to the rear, obstruct the evening sunlight & does it matter much?

BR 4 is more like a study size than formal living siz. If it is going to be a 2nd living room then remove the wall between the entry and bedroom 4 to give the perception of more space. Draw some furniture in your plan to scale so you know how your rooms work (or don't work) when they are furnished.

When money and space is tight you need to consider what is really essential, rather than what would be nice to have. Trying to squeeze too much in will result in a compromised floor plan.

Best of luck

Dr Retro of Dr Retro House Calls and Dr Retro Virtual Visits

BR4 is not big enough for a living room.
If it is not a double storey house being built next door then northern sun should come into room.
If BR2 is moved, it will not obstruct evening sunlight, because the sun goes down in the west not the south. you have windows to the west. It still is a weird place for a bedroom.
Laundry, it should be more a laundry than a pantry. You can have a 1000mm pantry cupboard in the kitchen, and move fridge to other end of wall.
Take into account washing baskets, piles of clothes waiting for washing, on wash day. Hooks on the hall wall for jackets. Room on the floor for dirty shoes, etc, etc. and you don't have to walk through the kitchen and food to the laundry.
If you remove the thought of a fourth bedroom, you could have two decent bedrooms and bathroom with separate powder room along the south wall. Then laundry and kitchen, on the south wall at the rear. With living and dining positioned on the north side.

Here is a floor plan that you could take some direction from.

Nice Dreamer.
If kids are young they can share, bed 3 can be their toy room, with a sofa bed for guests , get rid of bed 2 in kitchen area.
Live there for a bit..move to a bigger house later.
This gets you on the property ladder.
It's not your dream home.
Make the best use of space.
These people know what they are talking about.
Take their advice so your home can be the best version it can be for your budget.
A large kitchen/ dining/ family facing north and afternoon sun on the deck will make it an amazing place to live in.
Have a sep laundry, and a sep loo WITH basin if you can.
You can store appliances like waffle makers, electric fry pan etc in there...and dry stores, but also wash sheets with vomit on..no problem.
I think the size of the house, can't squeeze a butlers pantry in, but a wall of storage at 30 cm deep where door to pantry was..you might? Move fridge , and have this butt up somehow to bench. Etc

Good suggestion Kate, but, these are bedrooms that need windows, and you have built them on the boundary.

Sorry, pressed post before finishing. There may be council regulations about the amount of building on the boundary. And the size of the windows in ratio to the rooms. But, otherwise a good idea.

They have windows. B2 to rear and b3 and bathroom to setback space

B4 is on boundary, no reason why 2 and 3 can't be.

Surely....or are you only allowed front rooms to be on boundary in oz?

But great job with the crayons Kate.

Genius re courtyard, even if its little, let's light in 3 rooms

Building regulations for councils can vary in the amount of home built on the boundary. Yes I know they have windows, but again council regulations can dictate size of windows in ratio to inside room.

adding furniture always gives a much better idea of available space and bed 4 is much too small for a living area although bed 3 without a wall and wardrobe could be used for a small TV room to open up the long hallway but i've moved bed 2 to make a MPR, added generous ceiling height biw in every bedroom (to include general storage as well as personal items) and simplified the bathrooms and the wide vanities can be used for linen..assuming that there will be a restriction of total floor area to block size i've kept this variation of your plan to 60% of the total area and think highlight windows on the south and tall wide windows above 750 off the floor on the north will allow plenty of northern light and still allow easy furniture placement, the MPR could have a western window to make the room more comfortable in cold weather and external blinds to exclude hot afternoon sun and shade blinds on the outside of the verandah would screen the sliding door but i would omit the external laundry door and the "pantry wall" as shown in Dreamers photo of my own pantry can be included inside wall cavities and needs only about 15cms depth for very useful storage

@oklouise, kiwi mills posted the photo of the pantry not me.
And a wonderful organised pantry it is!

Thank you everyone for your inputs, really means a lot :)

As @kiwimills said, this property will be more to get the foot in the door & eventually move to a bigger & 'dream home' kinda house later.

Thank you @kate, @oklouise & @dreamer for providing me with an alternate viewpoint, really appreciate it!

@oklouise, thank you for incorporating the furniture in the FP, really helps a lot to visualize, how everything will fit in.

Just curious, what size is the bed in the Master BR, we have a King, not sure if it'll leave much room

the bed in the first plan is a standard queen size but here's the same room with a Super King size 2100 x 2100 ..but, each room has to compromise in order to fit in all the room within the usual usual 60% limit of total floor area and the master bedroom has to be reduced in order to move bed 2 and make a workable kitchen