Thanks for all your advice.
This house isn't for us to live in so when it comes to tiles V carpet etc. I'll be taking the cheapest option every time except when we think that the more expensive option will add more value.
Hopefully in a few years we can afford to build in the area we want to live in instead of renting here (if we can find a home for knockdown) and then it will be heaps more fun and we'll be building something in a traditional Mexican or Middle Eastern style with straw.
I'm no fan of carpet. I like tiles or wood with really large rugs where needed. I like taking my rugs to the fence and hanging them in the sun.