I would suggest you take out the cabinet that is to the right of the stove and use it elsewhere in the house -- perhaps in the bathroom or dining room with a hutch above it. Then, I would suggest you have someone install a lazy susan cabinet in the corner between the sink counter and the stove, meaning you would move the stove down a bit and have a small cabinet/counter top to the right of the stove. I would suggest you have the cabinets refinished in white and then paint the walls a pastel you like. If you would prefer white walls, then add white-painted crown molding and paint the ceiling a light neutral blue, such as Sherwin Williams Niagara Falls Blue. Then, I would suggest you choose a favorite accent color and use this sparingly in accessories like towels, pot holders, small vases or floral arrangements, and a valence above the triple windows. For a genuine 1940s look, you might have white ceramic square tiles with a rectangular red border installed as a back splash behind and above the stove. If you are replacing counter tops, I would suggest a light color such as white with a beige or light grey vein or striation for some sort of pattern. You might be able to find the same color and design in floor tile OR opt for a wood floor as another poster suggested.

I'm glad you guys are growing.

We asked a similar question when we bought our piece of bare land. We were advised that building a simple shape would reduce costs... so we've built a t shape. Single story is almost always cheaper. We have a builder who is happy to let us do a lot of work with him. We also choose to live on site, which saves us a lot in fuel. The kids and I clean up the building site most days. We've been able to separate the rubbish out between actual rubbish and recyclable material. As for cladding, we were going to do a mix of corrugated iron with plywood board and batten. But given some of the additional hassles, I don't think there's much in it cost wise. However, in saying all that, we chose to invest in long term benefits, so our house is exactly what we want and should be cheap to run. We were hoping to build for $1800 /sq m but we're still coming out at about the $2000 mark.

Thank you for your comments. I really appreciate your help. I think we are on the same track. The rugs I have brought home have fought with the terracotta colour plus the busyness of the small tiles. I did come across this picture on Houzz, which I think looks good. What do you think? It would need some of that burnt orange from the chair upholstery as well as the aubergine to tie in but I liked the dark border line, it matched with the grout.