You have done a beautiful job of tucking plants into the crevices of your retaining walls. Your house trim color is perfect -- just slightly lighter in hue than the retaining wall blocks. First I would paint the big, flat gray wall slightly lighter than the blocks and slightly darker than the house trim. The concrete walk and stairs I would stain a mottled blend of the blocks and the house trim colors. Next would be to paint the railing black or the house body color. Now, think of the following as creating a light, airy trellise structure from the walk-level face of the (currently gray) wall to about 7' above the top of the wall (using 6x6" posts attached to the wall) with a corresponding line of posts sunk into the terrace level 2' in from the outside edge of the wall-attached posts. The inside posts would be about 6-8" higher than the outside posts. Put 4x4" wood to attach the outside line of posts to each other and do the same with the inside line of posts. Run wood pieces at the top of the two lines of posts from the inside line to the outside line at about a 45 degree angle. They would be cantilevered up at the terrace level. Across the top of the angled pieces create your top trellise boards which run parallel to the two lines of posts. OK. There you have your basic structure. You might want to extend the structure around to follow the street side of the terrace. You could then follow the suggestion of reom10 above about creating a bench-planter on the terrace side. Your spacing of the boards parallel to the gray wall and attached to the outside posts would determine how private you wanted your terrace to be. You might want to soften the terrace "floor" by using something irregular like flagstone with groundcover plantings between the stones. From the latticework on top of your structure you could hang seasonal flower baskets. Plant vines to go up the trellis and spill down the wall. How about planting a row of tall, narrow shrubs along the neighbor's fence above your terrace to help add to your privacy and make your yard feel less 'structured'? Or, how about patio table/s with umbrellas to block your neighbor's view? Anyway, you have a fun project ahead of you.

I agree that you should take down the trellis but be aware that you'll probably need to extend your decking rail along that side in order to enclose the deck for building code purposes. If that's more of an expense than you're willing to incur right now, consider at least taking it down to the same height as the rest of your deck and putting a top railing across it. You could then put in some foundation plantings that would climb up and cover the fact that it runs in a different direction than the front of your deck. If I'm looking at it correctly, your gate gives you access to your front door from your drive way. Am I right? In that case, I think your gate should stay where it is. I agree with flair lighting that a new light is in order over your entry. If you like the idea of a motion light, they make decorative outdoor fixtures with motion lights built in. Your fence would definitely look nice painted a lighter color. Right now, as flair said, it's a bit unwelcoming. If you're painting your metal roof, take your house and trim colors from there to coordinate. You could definitely paint your scalloped trim a different color than the house. Matching it to whatever trim color you choose would look great. Do you use the steps from your deck to access your yard? If not, I would consider removing them and closing in that portion of the deck as well. If you do use them, I would add a hand rail for safety purposes. Congratulations on your new house and good luck with your project!

Thanks for the replies! My wife suggested we talk to a local real estate agent, so i think that is a good idea... just that Im not sure how helpful they are likely to be if we arent selling yet :) As for saving for our dream house, I dont disagree, however if doing this up nicely over the next ~5 years or so while we live here nets us some extra in the eventual sale, then that of course will help us as well. Interesting thing happened today actually. I got a knock on the door and one of the older neighbours asked if he could take some lemons from the tree. I of course said yes. Anyway he was telling me he had lived in the street for 40 years. I asked him if the house had always looked like this, and he said no that ~30 years ago the old old owner did a massive renovation and pulled off the timber and put up the bricks and gutted the inside of the house. Interesting stuff!

These houses were designed to look good from the street, regardless of what the orientation was for the Sun. Everything depends on your budget and how far your prepared to go. A friend's house in Queenstown faced the street, the toilet and bathroom had the best view of the lake and the Sun. They got a house removal Coy in, jacked it up put it on the truck drove out and turned it around and reconnected all the services. It then faced the North and West great views and warmth, doubled its value in 3 days!. I replaced my storage water cylinder with a outside gas one, picked up enormous space in our laundry. Another tip is to draw up your "dream" plan, then overlay it over the existing and see what you can really do, your then not influenced by what is already there, and often get a much better insight and removed from the existing. Good luck, its very rewarding and make it fun!