i have been making cabinets for the home in solid Oak (not wood effect or verniered mdf) as i abore "rubbish" furniture. My workshop is approx 25sqMeters and i have a Fox 250mm table saw and Dewald radial arm saw, Dewald planner/thicknesser and a Ryobi Router table with a 1800W Dewald router.
Most of my joints that i do on my router are of the types Finger, 45deg Finger, and dado. I also do my raised panels on my router using a 1/2" 75mm Raised Panel bit and a Rail/Stile bit.
If i had the money I would have gone for a Scheppach Spindle Router.
If you use MDF please make sure you have excellent ventelation and dust extraction. MDF is a lung killer.
8X4 ... that's www.mechmate.com territory It may not be your cup of tea but it's worth a look and there is a new member on this forum who has built one ....Tim G-C
“I disapprove of what you say, but I will defend to the death your right to say it.”
(attrib. Voltaire but written by Evelyn Beatrice Hall "The Friends of Voltaire" 1906)
Just a silly suggestion which I haven't really thought through:
By analogy to the circular saws on the wall they have at B&Qs, if you are short of space could you mount the bed of the machine vertically? - essentially screw a normal machine to the wall. It would mean you would have to think about how you clamped things to it slightly more carefully but once they were clamped I don't see why it wouldn't work as normal. And if you were mostly working with sheet materials they are often easier to handle vertically than horizontal.
I guess you might need some form of brake on the Y axis as it might otherwise fall down if the power went out for some reason, and you may need a beefier motor to pull all that mass uphill.
Anyway I am sure there is something I am missing as I haven't seen any photos of this configuration.