Well balancing out material and costs labour costs is one thing but 2 story is quite a bit cheaper to build ; far less foundation and roofing area. It also simplifies the plumbing and of course is far more energy effective as downstairs heating will also contribute to upstairs heating. PROs can develop on this. And as Curt points out, modular is a very fast and cost effective solution which can allow you to put your pennies into better quality. Be very careful to select a known and competent professional if you go this way though, i don't know about NZ but europe abounds with cowboys ; low costers are to be strictly avoided.

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.

We have chosen Torlys Laminate now. It is more expensive but more resistant to water and small elderly dogs. The flooring isn't down yet as the house is still under construction. We await with anticipation on the outcome of our trial of the Green Glue noise reducing tape, in conjunction with between floor insulation and well laid and attached particle board.

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?