Not sure where you're located, but a gravel driveway may help to soften the house versus asphalt or concrete. Soften up the area with grasses. Here's a link to a photo of grasses with a hot color palette http://www.spacemakerpress.com/catalogue/catimages/st05imgb.jpg You can always choose a more muted color palette as well. I would definitely tier the plan heights so they're taller against the house and gradually get lower. It would help to bring the house to human scale and not appear towering above. The pathway could be in a natural stone - the same color as the gravel driveway (if you can do gravel).

Thank you! It won us over. The photos don't show it all as there is another stunning mountain range that dominates the view from the front of the house. These photos were taken a couple of years ago when the property was on the market prior to the current vendors purchasing it. We move in next week so will take some more photos then. Thanks.

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!

I have your setup #1 and it works well, we do drip a bit of water on the floor between sink and dishwasher, but you learn not to!! Also it gives a full clear bench on the peninsular for eating, setting out, or working or whatever. Your kitchen is slightly narrower, from memory ours is 1.6M not 1.3 as you have yours, Our peninsular has a circular end which has actually proved very beneficial for sitting round, and seats up to 5, meaning you are not sitting in a long line, but facing each other round the end, - I love it, it is a real gathering point. The outer side of the peninsular curves in to the centre, then flows out to make the circular ending, so its not protruding into the kitchen but into the other side, sorry I don't think I can add a sketch to this.