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).

Thanks :) Yeah decided to go with tile. So sand cement is ok over existing tiles if I prep them first? Only problem is, the new pad can only be about 30mm at it's thickest (leaving up to 15mm for tiles) otherwise it'll end up being higher than the hallway floor. So I either need to make the fall shallower or not bother with the waste and make it all level. If I made it level, could I use levelling compound at that thickness or would deck mud/sand cement be the best option? Also, should I be putting in mesh for strength? (I know I should (and will) ask the local hardware what they suggest, but it's great to have suggestions from the Houzz community also)

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.

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.