retaining wall

[pug]

hi all, first post. we are soon to start the process of raising and extending our house. any advice on which is the best way to go with using a retaining wall in common with a living area downstairs or is it better to keep the wall away from the house. once we dig out and raise/hold the house options are to dig footings in line with wall or a metre or so away. the wall will be no higher than 1 metre. both options have advantages, not sure which way to go.
thanks in advance

[ausdesign]

I take it is a clad frame & not a brick veneer or solid brick ?

[ozwinner]

Some pictures or rough diagrams would help.

Al