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!

An outdoor room is like any other room. First decide what you want to use it for. For example, my back yard has a couple of rooms. The "dining room" is a table and 4 chairs under an inexpensive ($150) 12 ' X 12' Home Depot gazebo . The gazebo gives a pleasant feeling of enclosure and privacy when we sit at the table, and it also keeps the table clean and dry. We have a big hydrangea shrub right at the edge of this area to mark its edge. It's pleasant to sit so close to something blooming. The "living room" is 2 comfortable chairs and a love seat around a coffee table. We entertain there and pull the dining room chairs over if there are more than 4 of us. We also sit there to read in the evening. There's a smallish tree right beside it so it's pleasantly shady. The "kitchen" is the grill and a small table to set things on, and is closest to the kitchen door. Once you have decided how you want to use the space, you'll need to decide whether you want a new "floor". We have a low L-shaped deck that has the three rooms. Or you may decide on a concrete or slab patio for all or part of it. Farther from the house is some grass, and then more big shrubs (evergreen and blooming - little maintenance). And a little raspberry patch because it's fun to eat them right from the bush. The landscaping really comes last, once you have decided on the functions of the area. Don't start planting without a room plan. You may want, for example, to put one of your rooms right against the fence or wall, and if you've already planted shrubs or made beds then they will be in the way. You want to plant trees and larger shrubs so they are useful as the walls and roof of your rooms. Be sure to check the mature size of your plantings (it's on the tags) so you don't end up with branches hanging over your roof or over your neighbor's property. Don't make the mistake of putting in so many beds or plantings that you don't have time to sit and enjoy. A few low-maintenance shrubs that are planted close to where you sit are just as enjoyable as big swaths of flower beds that need weeding, annual bedding plants and maintenance (unless gardening is a hobby that you enjoy spending time at.) Enjoy your new home!

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! :)

You could lay a nice curved shape garden by the corner of fence and plant layers starting with 2-3 mtr trees at back down to 50-70 cm high plants at front. This will soften the fence line and give you something to look at while on the slab. Something for the kids also like a small structure to play in, on and around would complete a nice family back yard. If you are handy you can make you own small play ground copying parts of a local ground or there are kit sets available. Good luck,