You have all the reasons to redo the house, its very lifeless and looks worn out. I feel creating a separation will terminate the spaciousness of the room. Adding colours will surely help, Since you have a tan color sofa,I suggest grey, white or light blue color on one of the walls. Add some art works of the color you chose for the wall. This room needs some fillers like , books, throws, candle stands tall and lean. YES DON FORGET 1. Mount the tv on the wall make some space on the floor and Fix a large size mirror ( Wooden Frame if you can afford).

x2 what Dytecture said, this is not enough to go on. Most important thing before you do anything, is you need to know lot restrictions in that area and what are the zoning requirements, i.e. side, rear,front, set-backs. In addition the size of your house will also depend on the total percentage of a lot that can be covered by impervious surfaces (structures, decks, and surfaces likes asphalt or concrete driveways etc, which reduce natural infiltration, etc and after you obtain that information, only then you can contact a local Architect and you can roughly come up with the size of your house and layout on the lot... until that, the information you get here it will be useless to you in your case and a waste of time for everyone else. With that said, 40x104 is not a confirming lot for most of the area around here and you will need variances because confirming lot sizes usually start at 50x100, unless you in a section where ordinances permit residential cluster development. Good luck.

I post boutique hotel awards because I'm totally inspired with their color combination and furniture. Especially the way in which they decorate their bedrooms. All are awesome, if you have any site like boutique hotel awards please share with me. Thanks in advance @ SandyC.

Both the plans are not 100% as per vastu . if you want to follow vastu then hire a professional.