Hi, I know there are so many things to take into account and it's hard to get perspective from a photo. The white you can see is an extension with building paper, and the red is the existing building which is two story. The exterior is wide weatherboard planking, the windows are silver aluminium with very little trim. The doors in the front of the picture are French doors from bedrooms that will open to an enclosed courtyard ( yet to be built of course) The roof will be a light grey/brown but you won't see it much because of the flat roof style. There will be decking and ballustrades covering half of the new extension.

I wish I could post links to pics of others' houses that are already on HOUZZ. Does anyone know how? I've been inspired by a project called "San Francisco Mid-Century Mix" on here.

The blue is awesome (grey is too trendy)! The reason it stands out to you is perhaps because it's the only real colour there. Bring in the blue in a window treatment, a small appliance that sits on the counter, a pretty tray or area rug. Also, it is more appealing often if there are more than 2 colours - so right now you have a white and blue colour scheme - bring in red or orange or fushia - something from the other side of the spectrum (like you did with the yellow flowers but in a more permanent way)!

Get the professional sander guys in to repair the living areas and kitchen but don't go too dark with the stain as it will kill the lovely grain in the matai. I'm thinking a couple of tones richer than the timber knots showing in your photo, definitely no yellow tone at all. In NZ stepping on to carpet especially in a kiwi winter is so much nicer than a cold floor board shock!!! A nice area rug for the lounge and you're done.