I think the first layout is fine. You might want to consider moving the door for the storage room of the master bedroom so that it opens into the hall. That way the kids can use it for overflow storage. Also, that hallway is big enough that I think it could hold a large armour, providing more closet space. (There's no need to sleep in the same room as your clothes, so long as they're not too far off.) Also, don't forget that while the drawing shows kids in double beds, this need not be the case, so there will be more room for furniture (dressers or whatever) in their rooms. Finally, that step to bedroom 4 will not be odd at all. I've seen it in other homes. It looks clumsy in the drawing but it isn't. What you'll see when you come up the stairs is a bedroom door on a slight diagonal. It's only an odd jagged step if you walk like a robot, in straight lines along the wall, which is what your eye is doing on the drawing but you won't do in real life.

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!

We have a 900x900 shower and it's plenty big enough. Neither of your proposed layouts looks that great, to be perfectly honest, sorry! In the first layout, you could improve it quite a lot by swapping the toilet and vanity (centre the toilet under the window on the bottom right of the picture if possible), and having the shower door on the other wall (beside the door). Then, you could have a towel rail on the wall beside the door (i.e. behind the door when it's open), which would be accessible from the shower but hidden when the door was open. An 800x1200 shower might be a good size for your space. You'd have to choose a toilet that doesn't protrude too far, plus a narrow vanity. With that layout, you could have a long but narrow wall-hung vanity, with a big mirror covering the wall between the windows, which would make the room feel bigger and would give a good amount of storage. Also, you may find this helpful: http://www.houseplanshelper.com/small-bathroom-floor-plans.html?utm_content=buffer4aa20&utm_medium=social&utm_source=facebook.com&utm_campaign=buffer

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