Yellowfox designer Shelley and her partner Mike fell in love with this tiny board-and-batten cottage on Waiheke Island, and decided to make it over "on a fairly frugal budget." They wanted to keep the original square paned-glass windows and doors, maximise the "drop dead gorgeous views of the bay" and create space and indoor-outdoor flow, all while aiming for a Cape Cod-style aesthetic. With the help of the design team at Yellowfox, they have transformed the old cottage into their dream holiday home.

What was the biggest challenge with creating your home interior look? The biggest challenge was maximizing the space - the bach is very small.

What was the greatest success? The greatest success was to see the home looking cosy and light-filled. We also love the Cape Cod-style glossy white brick pattern kitchen splashback and the sofa dressed in its summer coat of white linen slip covers.

What is your advice to someone trying to achieve a similar look? Our advice would be don’t try to be a Cape Cod purist - instead, take the style and give it a modern twist.

What colours did you use? We used Resene Thorndon Cream in three strengths to achieve a classic tone-on-tone appeal. The shades work really well with our eclectic mix of junk shop finds and nautical memorabilia. For the exterior of the house, we used Resene Nero. Choosing black was a nod to the old style of creosote-treated timber bach, but it really breaks all the rules because conventional wisdom is that you don't paint the outside of your home in a dark colour. But you can break the rules – as long as you know the consequences of your actions. We used Resene's CoolColour Technology paint, so that the dark colour won't attract heat like traditional dark paints would. Problem solved!

In this shot, you can see the dark exterior of the house, painted Resene Nero, contrasting with the interior's three shades of white: Resene Thorndon Cream, Resene Half Thorndon Cream and Resene Double Thorndon Cream.

The glossy white brick pattern of the kitchen splashback is one of Shelley's favourite things about the cottage's new interior.

The small bathroom couldn't be made any bigger, but Shelley and Mike have ensured that it is as stylish as the rest of the house.

The entrance to the house sets the tone for the nautical theme inside. The exterior of the house is Resene Nero.

Painted in Resene Thorndon Cream, the master bedroom has a simple neutral palette, with some pattern and texture provided by the cushions and curtains.