I love the house I built, but what bugs me is that I built it too far back on the lot. It's workable as is there is room behind the house for a small garden. But I have this bad habit of having large gardens. *Blush* Though there is room for another garden on the side of the house, so there is that.
I really like the idea you're going with build on a smaller lot and then player can place house on any bigger lot desired for more space.
You can do that with mine as well, but I've never been one to really like playing with large lots because the lag gets to be too much.
40x40 is okay, but any bigger than that is a pain to play with.