Rewinding a bit -- why did you originally consider knock down rebuild , but now wish to do what appears fairly major renovations ? Without getting too personal , I'd want the logical things like photos ( to see present external and internal styles , materials , state of repair , etc ) , but also where the house is on the section , views , etc , etc , etc . Then you would need to see estimated resale values in relation to what you spend , etc .

In a lower value location , you don't want to overcapitalise , but in a high value environment , the value of a new build may far exceed a renovation , especially a compromised renovation that has primarily old bones .

Looking at things ( like the size ) I assume the upstairs sits on steel beams or similar ( wooden beams would have probably had more supports , which would have meant more load bearing walls , but what happens when you add and alter ? You've already mentioned brick walls that may be load bearing -- what about services like water , drainage , wiring ? A kitchen upstairs has different requirements to an ensuite bathroom , and probably different locations , so you remove most internal wallboards , a lot of walls , a lot of framing -- you see where I am going with this !

A quick story and a floor plan isn't enough info to base a suggestion on IMO .

You will need accurate dimensions. Downstairs is not easy to work out as the dimensioned areas overlap

Thanks for your comments Pottsy 99 and Kate. Basically our change of mind comes from a bad VCAT experience and outcome …we have spent 2 years planning in at council etc etc…. And dealing with neighbours. We have lived in the shack and enjoyed the amenities and location ….but don’t want to spend the full budget on a now compromised design. Whatever we do will not over capitalise…in fact what we are planning will under capitalise but will provide us with a vey comfortable place to stay, that maybe a few years down the track we may gain enthusiasm to revisit a further larger renovation to add extra to the house.
The views are from upstairs and the house has a north/eastern aspect. There are large windows facing the balcony upstairs and the pergola downstairs.
The measurements of upstairs are 1220 wide x 4500 deep and downstairs are 1420 wide x 6800 deep.
At this stage I am just looking at the feasibility of the spaces…we can manage the logistics if we go down that track.
The structure of the house is Ok and quite solid. Some windows and doors will require some attention. It is a very simple 2 story flat roof house with block work on the lower section and weatherboards on the upstairs. I will try to post some photos.
I appreciate your interest in our project, so Thankyou for your comments so far.

Thanks big reader. All our planned works are within the original footprint..so no building permit required. Downstairs we are working within the restraints of the block work walls. We can remove laundry and kitchen walls as they are not load bearing. We see this as a 2 phase renovation..stage one what we can do without a permit and within the current footprint..and stage 2 permit required and new garage with master suit, extras living and extend existing deck and add new deck to rear.

Have you received confirmation from the local Council that you don’t need a building permit? Staying within the footprint doesn’t necessarily remove the permit necessity. The work you’re planning are beyond the exempt repairs, maintenance or renewal definition. I’m all for bending rules and have done a few internal works without a permit in my time. If you’re not planning on selling or financing anytime soon you could probably get away with it.

is the house still only to be used for a holiday home and long term what else do you want to include in an extension?

Can you check the measurements posted 1420 x6800 and 1220 x 4500 do not appear correct.

Will you require a toilet upstairs?

Thanks Houzzers..oklouise, thIs house will be a holiday house. As a couple we may be down here regularly, and holidays etc kids and family will visit.Dreamer: no toilet required upstairs at this stage. Sorry about the measurements…please see new marked up plan below. After initial renovation..without permit required, we would like to add a garage, master suite, possible another bedroom, upstairs front and rear deck

Thanks Houzzers..oklouise, thIs house will be a holiday house. As a couple we may be down here regularly, and holidays etc kids and family will visit.Dreamer: no toilet required upstairs at this stage. Sorry about the measurements…please see new marked up plan below. After initial renovation..without permit required, we would like to add a garage, master suite, possible another bedroom, upstairs front and rear deck

I’ve included original plans for context also. Thinking maybe relocating the staircase might be better in stage 2…and just work with the spiral for now.image 1 show exterior, looking to make it more appealing also.

it's a great looking house but i think it's a mistake to plan a two story renovation without an upstairs toilet and the final stair location unless you intend to add an extension that includes the new staircase but if the house is mainly to be used by a couple occasionally joined by other family members i would have the master suite upstairs with the living area and keep downstairs for guests and plan for a whole house reno/extension even if you don't do all the work at once but we need a site plan showing distance to all boundaries form the existing house and the direction of views to make specific suggestions

Thanks oklouise. Agree..downstairs will eventually be for guests.. 2 bedrooms and extra living flowing out to garden . We intend to add 2 story extension..garage underneath, master suite, maybe another bedroom and bathroom/powder room , thinking entry and stairs could be incorporated there also.main views are from east elevation and nice garden views else where. Plenty of room ant the back of the block for extension and garden east elevation is front of the house and west elevation is at the back of the house..but where guests and family arrive. I. The very immediate future we want a great upstairs living/dining and kitchen..downstairs a master bedroom, maybe 2 guest rooms and bathrooms.

orientation is confusing...you say that there is plenty of space in the rear garden for an extension but where do you want the garage?? please confirm that the street, driveway and and entry is on the west and the main views and rear garden is towards the east but is there enough space ie at least 12m from the existing house to the front fence and/or at least 7m (plus angled boundaries) from the sides to add a double garage...no point in planning an internal renovation without allowing for future renovation including new stairs, what restrictions are there for flood zoning and please provide a site plan showing the existing house on the block with dimensions

My suggestion is to add the stairs to the existing exterior of the house, ground floor enter from dining and first floor exiting into existing stair space depending on staircase dimensions. These new stairs would be built in with cladding of your choice and could have a sloping roof to match the angle of the stairs. Going by your drawings the dining room currently has large doors which would allow the stairs to be open to the ground floor.

Thanks siriuskey…that was one of our options also…for now we will need to locate staircase inside the current footprint….and if we apply for planning at some stage to add garage, master etc we can relocate the stairs in that space.
We are thinking the kitchen would be along the bedroom wall on northern side ( best to take in the view)….in possibly a U shape. ..so as not to compromise the kitchen we think the staircase could be moved about 3 metres from the corner (about where the current staircase is) giving us a good kitchen space that will work regardless of if staircase is later relocated or not . ..for now the staircase would run behind the dining space.

It would be best to work out a whole new floorplan before you start anything and build in stages. Making changes now and then ripping that apart to make additions later is a waste of time and money. As you say this is a holiday house, Beach?, so casual living plus tents would be ideal until the house is completed.. Your circular stair case could possibly be repurposed as external access.