to aim to stay within budget I suggest keeping the bathroom intact and enclosing the kitchenette to install a vanity and create a wiw, adding a "short" dividing wall to retain some light and air circulation for a windowless bedroom and add a basic kitchen along the wall next to the existing laundry where new plumbing could be concealed inside walls OR, for much more money, convert the garage to a bedroom and wiw, the old laundry to an ensuite bathroom, make a new laundry at the rear of the remaining garage, convert the old bathroom and kitchenette to a more generous kitchen with an island and optional side entry and extra window

Hi oklouise, In the shorter term, I was going to live in the granny flat and rent out the main house to people I know or 2-3 international uni students. In the longer term, I would like to have it as a lowset living option for my mum who is in her late 70's. Somewhere, low maintenance, where she can keep her independence (as would I), but has me close by to provide her assistance where required. The original house has 3 bedrooms (the 3rd one is only 3.1 x 2.65m with no built in wardrobe. The back of the property backs onto a council park. The house is set back further from the front than all of the neighbouring properties (greater than 7 metres). The area under the current house would just be used for carparking and storage. The remaining length of my backyard from my back steps is 18.6 metres. I don't think it would necessary add value to my property, but rather provide me with an income as well as options for family or friends that need the accommodation. I hope to keep the house for the long term.

don't forget your washing line needs to be where there is ample sun, not just where it fits... So to the north or east is good, or for me being too lazy to get up early, west/north. I stayed with someone in a shiny new house and they had a clothesline on the south side! they ended up setting up racks in the living room because it had a window that faced north! I'm not sure if I missed you saying which way is north? forgive me. It also needs to be easily accessed from your laundry room. And IMO those fold out on the wall drying rack things are not sufficient a long line or rotary is better. A thought on the granny flat.... the loo. It has no ventilation, which I think isn't great in a small house. Can you get rid of the powder room and have the loo in the bathroom making it a bigger space? I would swap the shower and toilet then and have a little window above the loo for ventilation. surely its easier (and cheaper?) to plum the loo when its on an external wall? You'll need a clothesline for the granny flat too? Is the laundry area in the bathroom for the flat?

@dreamer thanks for your input. Do you mean placing glass sliders nstead of highlights for bed 1 and bed 2? Do you think that would be OK close to boundary? Also where would you place them for furniture placement? What type of door for bathroom privacy? A swing door? Do you agree with @kate to narrow the peninsula bench? Yes, this will be a rental for all ages. We have a very good highschool across the road and many, many.people move into the suburb to be in the catchment for the school. Eventually my parents may live here but that would not be for at least 10 years or so. What do you think of laundry space? I will need to check whether or not you are allowed to do this. Storage and porch areas do not count for internal floor space max at 70m2