Living in a 704 SqFt house can be spacious enough if you plan it right and make good use of the space. Even a small home can be comfortable to live. Your home is your castle and so long as you feel happy and contented in the space you are in, then the size of the house does not matter. In fact many couples prefer a smaller space as they have less to maintain and it is far more economical than a large home.
Smaller homes require less energy so leave a smaller imprint on the environment, plus heating and cooling the home will be lot less money. If you have a budget to stay within, you will find it easier to stay on target in a smaller space. Plan the use of the space well. Many large homes have so much 'space' that is unused. Even using your stairway for cupboard space and a bookshelf is pretty clever and efficient.Keeping a smaller home clean can be both harder and easier. There is not place to 'hide' things, rather if you take the time to stay organized with your stuff, you will feel more at peace with yourself and have a nice tidy home. Small homes take far less time to clean than large ones.
You can use your limited space by having more than one function in a room. Hallways take up a lot of space and you can eliminate them in your house plan. Plan instead for a good amount of closet and storage space. When you build small, because it is less costly than a large house, you can incorporate green ideas more easily and choose energy efficient windows and doors as this may now seem more attainable than if you were building large. Plan a porch on your small home and if you want to really utilize it make sure to screen it in and have a roof over it. This will give you a lot of extra living space in the outdoor seasons for cooking, eating and enjoying outside time. Planning for screening keeps those nasty little bugs out!
Plan where you new little home is going to sit on your property in relation to the sun so that you can maximize the benefits of the sunlight.