The house looks very livable. I love that you have concentrated on creating one nice bath with separate walk in shower and a windowed tub! Since you have already thought of it, I'm going to assume that the attic is for future expansion and cannot be adapted for use as the current "away room." We are also in the process of designing a small house, and we've designated our study as the "away room." Ours will open off the dining room. If you switched the locations of the Study and Bed 1 on the same side, you could put french doors or an extra wide door with etched or decorative glass from the hallway into the right hand corner of the study. This would give you a really long diagonal view through the lounge and out the french doors, and from the lounge through the study to the window at the far end... The study window should be increased in width to match the neighboring window in Bed 1, and it then becomes ripe for a small window seat, either a clip on bay bumping out, or a "built-in" bay using narrow built ins on either side. Or both: build "in" for now, putting file cabinet drawers under the window seat, and angled corner units in for storage, and add the bump out bay later when you know whether your offspring would prefer a really cute desk, or a window seat, or a bed nook. You would, alas, lose the door from Bed 1 into the bath.... but honestly, there are lot of doors into that bathroom already, and that one has substantial collision potential. It might be best to make the single access point that door from the laundry. Either a glass panel set high in the bath room doors or a transome would make it easy to tell when someone is in the loo. Other ideas would be to split the nook under the stairs, so that half the depth opens to the lounge, and the other half to Bed2... with the wall thickness, you probably get close to 600mm or 2' on each side. Add a deep bookcase or other built in, and you're easily at a depth that makes both spaces very tucked in. Lastly, if funds allow a shallow bay window over the kitchen sink would visually expand the kitchen, particularly if you could arrange it so that the counter runs right into the bay.

We got the IKEA shelves that are pictured in the butlers pantry photo I posted when we were on holiday in Melbourne, Australia. We don't have IKEA here in New Zealand! Hubby is going back over in May/June so will get him to get more of that sort of thing when there. We would pay about 4x the price for that sort of thing here in NZ. I need to work out what I will do now where the fridge was and there is the angle change (does that make sense?).

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!

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