Hi Ang, I thought I'd follow up my earlier comment with pictures of before and after of pine cupboards I specified to be painted in a budget makeover. My clients tell me people presumed they had purchased brand new cabinetry, so startling was the makeover. Somehow I have put the "after" on the left and "before" image on the right!

We have that exact sink! And a very small powder room stuck in the 80s. Only difference is our door is on a side wall, and there is no window. We're no where near finished, but just ripping down the pink floral and stripey wall paper has made a huge difference (including revealing the toilet is in fact white, not pale pink). We're going to replace the rather unappealing plastic sink with a tiny ceramic one with new taps, and the old plastic cistern with a new colonial style ceramic one, and new seat (keeping the toilet base as it is in good condition, and classic style). Then new paint, and a good clean and regrout to the floor, new light shade, toilet roll holder, storage in one corner and art.

I would clean up first. Especially the stuff growing in the paving. Then get gardening with pot plants and start experimenting with different plants and the positions. See what you like and if you can keep it alive! Our house has the sun setting over the back fence and we've done a few inexpensive things to reduce that issue (most expensive were outdoor blinds around the verandah) but for most of the year we just don't want to be out there. It is hard work to keep the plants going in summer, there is a lot of sand due to the difficulty in keeping lawn alive and it is just bloody hot. So, that's why I'm saying clean up, start gardening small and see how you go before committing to structures that might not address the real issues you have with the yard. Just my 2 cents! :)

I would consider a small retaining wall perhaps 2-3 planks high this will provide support to the bank but also allow the pathway to remain clear and formal. The ferns seem to be doing well but could do with a tidy up. I would also prune the tree so it allows a bit more light into the section to help prevent dampness, you also want to take it away from the house, without destroying it's natural shape. As ferns seem to naturally want to grow there, you could continue that theme. Perhaps some other shade / cooler temperature type plants with some flowers could be a good addition. I am not sure which plants can tolerate the cold Dunedin winters, so you best contact is your local garden centre. You want plants that are lush all year round. Also have a look at other plants growing in the neighbourhood as that will give you a good idea of what does and doesn't do well in your climate. Good Luck.