Thanks for posting new views of your room. You are right, nothing can go in front of the paneling, and we won't block the built-in cubby. In that case let's work with the rest of the space. I found a picture on Houzz for your gallery wall. I think this will allow you to bring in color and texture and interest to your wall without taking up space like furniture would. Try to play with portraits and a couple of paintings in there too - mix it up. Otherwise I would not put anything at the top of that landing (I'd remove that console table). That picture wall should be enough visual interest to your space and it'll draw the eye to the furthest wall as you walk in your house. I would try a small piece with closed storage between the bottom steps and that door by the entry. It looks like the space is no wider than 26", so it'll be a challenge to find something that fits and is tall enough. I would not use the wooden piece you showed above because you want wider proportions and fairly narrow depth so you don't bump into it as you walk by. (something like this ) I would hang a mirror on top of primping. By the cubby you could add a single seat stool. I'm not particularly suggesting these colors for the stool and bombe chest but something along these shapes. At this point if you do that big picture wall and add these two pieces of furniture and a mirror, you might not need to hang anything on the wall above the cubby. Also, I noticed your chandelier is quite substantial for the space and hanging pretty low. Would raising it a little or replacing it by something a little smaller be an option?

Well, for lack of a better idea, since you find it a drafty little space. I'm assuming the draft comes in on the right? Most of the necessities in the area are located of the left side; i.e. vent, thermostat, light switch etc. What I would do I think is caulk up the drafty spots, maybe even add sized poster board wrapped in batting I covered in a gorgeous fuscia with diagonal grosgrain ribbons every which way covered with a heavy velvet to be attached to the area above & below the window. (Of course remove the drapes that are hanging in there). This for the purpose of using it as a pin-it board for notes. Attach a table height board covered in felt to carry across the full width of the little room. Leaving just enough space for a comfortable little antique desk chair. Paint the back wall a bright cobalt blue, paint the ceiling a silvery pearlescent white. Find a way to attach a clip-on task lamp. And stretch a heavy duty enough wire across the top of the opening and complete it with a heavy doubled velvet drape with a drooping valance. Place a swag with fringe & jewels on it to be closed when not in use. Voila intrigue is yours!

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 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! :)