You should have checked the municipal setbacks prior to purchasing this house. I doubt you will be allowed to build any carport that extends in front of this home, however, you should still check with the powers that be.

Likely it would have been better to keep the garage as the garage and build out the back or up above for additional living space.

You would have to check setback rules before you add a carport, but it would be a desirable addition. I would remove or prune shrubs that are hiding your house. A new color would also go a long way to improving the appearance.

Building permit is required?

First thing to do is totally remove those 3 things right in front of your house.

I have no idea about the carport idea, but one quick way to improve the look from the street would be to move the tree that is in front of the windows to the right of the door. It (or another tree of your choice) could go to the left of the front door to cover that large expanse of stucco. Right now, your landscaping is too heavy on the right and lacking on the left. It should be more balanced, with plantings, flowers, etc. I see that there are a couple of bare trees on the left, but they are too close to the house and they do nothing to make that bare, windowless area less prominent...which is to say, landscaping is a good place to start.