Thanks for responding. We're in Auckland, New Zealand and close to the sea. Outdoor living is quite important but it does get chilly in winter so it's a balance. There are three adults and two young children in the household (one of the adults is an Au Pair who likes to spend time in her own room in the evenings). The kids will watch their cartoons generally in the morning and a bit before dinner. Then in the evening my husband and I will relax and watch TV. Right now the kids' toys are in the family room downstairs. We are foodies and like cooking. Generally when guests come over we all hang out in our small kitchen at the moment. The dining table we use for every meal time. We also like the idea of being able to get to the deck from the kitchen, rather than having to carry food in summer through the lounge/dining. The entry way is that big in order to reduce on the structural work but also in order to ensure that the door to the staircase is not in the lounge.

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!

It looks great ! As the house is lighter and darker greys , I'd add a white gloss painted 'rail' around the top -- hard to tell appropriate sizes from the photos , but probably pine 150-200mm wide and 60mm tall . Easiest would be to simply nail it to the posts and top rails , but if you added some spacers ( cut some 100 x 50 pine into 100mm lengths , then stain them the same dark grey fence colour , nail to the posts and probably every 'halfway' too , it would really 'lift' it more ? IMO that would really tie it all in with the house , and look classy , for maybe $2k tops .

A very simple layout keeping the floor space within the kitchen, the WIP takes up a lot of space with not much gain, The broom cupboard could be moved to the Laundry/entrance, narrow. If the wall has been bumped out to the eaves on the deck side giving an extra 300 depth to the kitchen you could make the island 2700 x 1200 and all drawers. The wall of narrow pantry will hold all pantry needs and more, no deep cupboards to dig into. cheers