Gosh, I am sounding like a broken record, but here is another great little house with potential, this time in Summer Hill. (Sold $876k)
Then for the living room, continuing the light relaxed theme, something like this. Somewhat more modern, so it would mean I might paint the floors a black.
Then for the kitchen I would probably keep it as is for the time being, but paint the cabinets and grey matte and change the handles to a brass or white, with brass features like below.
Then for where the dining room is, I would make a study room, like this.
Then for the narrow Bed 2, I would make the dining room, like this, and yes paint the ceiling black. Looks awesome.
Then the study on the side, can be a library/guest bedroom, looking like this.
For the bathroom, without seeing any photos, I am thinking a style like this might be nice.
Then the courtyard could do with some lattice like the below.