Mona you have seen exactly the dilemmas I'm facing with this room so I really appreciate your comments. I was focusing on no1, but really 2 and 3 are on my mind too. In terms of getting some continuity between the rooms I was planning on recovering the dining chairs in a fabric to tone with cushions/throws on the white couch, ottomans in a matching tone, and pulling this colour scheme through into cushions in the formal lounge. I love the spring colours at the moment (greens, blues etc) which you can see i'm playing with at the moment but you might be able to see the painting in the formal room which is orange, red and yellow with a blue/purple base. So I'm very keen on colour and so tired of the brown carpet and neutral walls. I was also going to restain the dining table and chairs to a dark mahogany colour, and change the bar stools to something more modern. re: rug closer to sofa, I've done this and it looks off-balance with nothing else in the space. It seems to work better in the middle of the carpet area at the moment. Perhaps thats because I haven't ordered the ottomans yet. I don't want to add a coffee table to this room as prefer Ottoman to put feet up on. I've attached a pic of a rug, do you think something like this would work better? re the wall: yes this is the major for me at the moment. It is a TV room so tv and speakers stay and I wont be adding any custom cabinetry. The idea was to increase the space in this room by removing all of the cabinets and they are now in the adjoining room. The speaker covers have not been painted as I needed to work out what wall covering to apply, and colour etc. so once they are painted the wall colour they will blend in better. The idea of shelving has merit, I'll have to have a think more about that... Any other thoughts you have are appreciated.

New Zealand! You live in paradise! Porch paint is specially made paint for wooden porches or decks. Its not a stain but an actual hard wearing & weather resistant paint that allows the wood texture to show through. Its safe for indoor or outdoor use. It is self priming & self sealing. I have used porch paint for wood paneling & kitchen cabinets & when remodeling a staircase formerly covered with carpet. It comes oil based or water based acrylic. I prefer oil based for a glossy easy to clean finish for a wooden table top. You may check your local home improvement/hardware store or paint store. I use Glidden Porch Paint. Takes me only 2 coats for white & the oil based goes on easily with a roller. Dries quickly too. Good luck!

Do you want to keep the wood floor? It is rare to see wood floors as garage floors. I've seen homes like this moved onto pour basement slabs (same concept as pile foundation...but with a basement instead of dirt. If you want to keep the wood, then there has to be a way to keep the wood off of the concrete. An 18" crawl space (dirt covered with 6mil poly sheeting or cement) is always an option. The 18" crawl space would have to be cross vented/heated properly. This is for "keeping" the wood. Flooring. I'm not sure what has to be done to remove the wood floor and have the building sit (joists and all) on concrete. Remove the joists and you have plenty of stability problems. You would need to speak with a local architect/building engineer who has some knowledge of what you are trying to do, soil conditions, etc. to get this right. In theory it can be done (we've just landed a small car on a comet...we should be able to put an old building on a cement slab)...I'm wondering about the expense to get it there (excavation + soil stabilization + concrete + piles, etc).

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.