The previous suggestions are fabulous, so if you have the money, I would go with one of them. If you haven't the money, then I would do what an earlier reader mentioned and have the bed facing north near the bathroom. You can run a power cord along the floor and you can buy white plastic covers that hide the power cord discreetly on the skirting board. Then place a chair and small table beside it near the bay windows to balance the length of the room and perhaps hide the power point. This is not the best solution as it'll make the bed hard to make and have little room for a bedside table. But it is cheaper. Just an alternative. Another way to do this cheaply would be to do what Two Company's Renovations suggested but instead of building a wall using your cupboards as the wall and making your own large, bed head to cover the back of both of the cupboards. Just a thought. Still building the wall or walk in may not be as expensive as you may think. Worth getting a quote.

Also love the buffet....it could be the "hero" of the room. It is beautiful and they are so hard to come by at a reasonable price. I have a much cheaper style mid century buffet and initially had the TV on top of it, but now the TV is wall mounted above it. The distance between the wall and the couch wall is about 4m and we have no issues with the TV being too high...you definitely need to factor that in if you wall mount it though...luckily I had a handyman friend helping me, otherwise I would have put the TV too high. With the TV being mounted, it actually makes the buffet more of a feature and anything that is put on the buffet is now "displayed" instead of being part of clutter with the TV. It looks great and I know yours will too if you wall mount the TV. That is the great thing about the mid century buffets...they seem to fit in just as well as modern furniture as they do with the classic furniture....and because your is "classic", it will never date...a great investment.

I wouldn't give up on doing something about those downlights. Either remove at least half of them or paint the ceiling darker to hide them. They make the room look as if it has an illness and your ceilings are high enough to tolerate the colour. In order to make your room suit you, work out how you use it most and make " rooms" with your furniture. It has to suit your lifestyle and your taste. Remember furniture doesn't need to be against a wall. Personally I hate texture. I don't like the look of it or the feel of it, so I don't use it and I don't care what suits other people. You need to be able to sit in your room and wherever you look should please your eye. I think the curtains are a good idea, but they needn't be sheer. If they are a solid plain colour you can pull them back by day unless you need them to keep the sun out and close them at night for privacy. If you don't need curtains and you just want the doors to look better then go for sheers. Good luck. Trial and error will help you sort it out.

my suggestion has the bathroom at the end without any changes to other walls, door or windows and i've include furniture to suit young long term student tenants and this could be altered to suit other guests...all the furniture, cabinets and fixtures are based on readily available flat pac options like Ikea and Kaboodle and the only custom carpentry will be the new bathroom wall and storage under the stairs and the usual trades for plumbing and electrical etc and i would use a shower cubicle rather than tiles so that you could use continuous vinyl flooring throughout the whole flat and minimise tiles...careful choices of all fixtures and fittings and maybe some basic DIY from your daughter and her boyfriend to assemble flat pacs and with painting? should allow the renovation within your budget and don't forget an outdoor sitting area with decking boards, outdoor furniture and a pullout clothesline rather than a dryer