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 had the same issue in an old kitchen, we went with Coopers, There is a stripper then wax that will soak in. The stripper is in spray bottles, but I'd send the dogs on holiday or keep them outside while you're doing it. It'll take some elbow wax, but will look amazing when you're finished. Good luck!

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?

Provided there is 1200mm clear between the breakfast bar and the opposite bench then by rights, you should have ample room and if that's the case, I think I would opt for the design with the kitchen on the eastern side. My reason; you get a much greater feeling of open plan by having the dining and lounge on the North/South plane. I like the large WIP in this one - on paper at least. The second plan somehow feels wrong. I personally don't like the idea of having the breakfast bar being located in the lounge. If it were me though, I would ask for a 3D CAD plan of both kitchens [to walk through on the computer] before making up my mind on which one to opt for as it gives you a much clearer vision of what the finished kitchen will be like rather than looking at a flat plan.