Thanks guys, I love the idea of the two matching chairs and ottoman. The kids are nearly grown out of the "little/coffee table" the floor tiles sound fun... we are in New Zealand and they aren't a big thing here, so I had never considered it. I'm thinking of introducing teal, to contrast to the red in the rest of the room (you can't see in the pics, but I have a massive red painting and a red rug in the tv nook.

I have just taken a couple more pictures (excuse the untidy house) from the stairs. As you can see it's an open plan area that isn't that big but very high ceilings also in wood (Macrocarpa) with dark wooden beams. The house is surrounded by bush so quite a dark house. I initially considered a darker wood similar to the beams but not sure if that will make the house appear smaller / darker...I'm really not sure what to do!?!?!? Thanks

Kind of funny really how many people would feel exposed and would not want to use the bathroom. The more I think about it, it's a bit like a public restroom with stalls (as stall walls rarely go to the ceiling or floor and have the added issues of gaps between the wall panels and doors -- which thankfully we won't have!). Regarding the humidity control issue, I should have clarified this is only for a toilet and small hand basin (not a full bathroom with shower). The main room on the other side of the proposed toilet is our dog whelping room where we will have young litters of puppies (when we have them). Further down the hall, removed from this room, is our training room where there are likely to be other visitors but the proposed bathroom would be quite removed from that area. It would be wonderful to find more windows like the ones that are up near the ceiling! That would certainly solve the issue. I'll have to scour the demolition/restoration places.

Thanks for the replies! My wife suggested we talk to a local real estate agent, so i think that is a good idea... just that Im not sure how helpful they are likely to be if we arent selling yet :) As for saving for our dream house, I dont disagree, however if doing this up nicely over the next ~5 years or so while we live here nets us some extra in the eventual sale, then that of course will help us as well. Interesting thing happened today actually. I got a knock on the door and one of the older neighbours asked if he could take some lemons from the tree. I of course said yes. Anyway he was telling me he had lived in the street for 40 years. I asked him if the house had always looked like this, and he said no that ~30 years ago the old old owner did a massive renovation and pulled off the timber and put up the bricks and gutted the inside of the house. Interesting stuff!