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This home is just 29sqm and ready for a makeover! Can you believe the size. Anyway, here is what I would do....

The front of the house would go from this

to this...

Blogged here

Then on the inside following the floor plan

The living area, would go from this.

to this

Blogged here

Then I would open the wall on the left under the stairs into the kitchen. 

So I could fit a table like this there.

Blogged here

There is no picture of the kitchen, but I would change the kitchen to this (obviously half the size, but with the laundry)

Blogged here

The bedroom would go from this

to this.

Pinned here

And depending on the quality of the bathroom I would make it look like this.

Blogged here

Then depending on council permission, I would see if I could add a roof top garden, like this.

Pinned here