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.

Bump

To me it looks like it would be better to have a smaller kitchen as being a 1 bedroom place the living/ kitchen area is quite small. I think having the essentials along the bedroom wall is good but the island makes the living area too small in the first plan, and in the second the cabinets make the walkway too narrow. I would put sink, fridge, oven along the bedroom wall then make any other bench and storage space more like moveable furniture to make the living area seem bigger. The kitchen may be able to be shut off behind doors (a bit like a euro laundry) when not in use to make a much bigger living room, especially if it isn't used a lot.

HI Madison There are pros and cons for every situation, but you need to work out what is best for your lifestyle. Personally, I agree with the carpet in the living room, and hard flooring in the kitchen/dining areas. All you need to do is work out your demarcation points (where carpet will meet hard flooring). A great retailer should be able to visit you at home, discuss options, give you pricing and away you go! (Us if you are in Auckland :) ) With littlies, I'd suggest a vinyl plank.....other posts will tell you I'm a big fan of it, but with kids, toys, mess, liquids etc, vinyl planks will give you the best wear over time. They are very hard wearing (Karndean have lifetime residential warranty), easy to keep clean, and waterproof - can be installed in all wet areas. Timber flooring, depending on which you choose (real wood, engineered wood, laminate), may not be the best "fit for purpose" products in your situation. Whilst I'm not trying to champion one product over the other, having had carpet with little kids, and putting drop sheets over carpet, under highchairs, why wouldn't someone not put in vinyl planks?