Right now I use my dining room table to cut and I have my Singer 401 in its cabinet in my sewing room. Once my tax refund gets here, I will buy the Grace Pro/Juki setup from Kathyquilts.com along with a table for cutting from Walmart or see if I can find a used one.
I am blessed, I live (altho, 5 cats, a dog and an african gray parrot do demand their space) in a smaller 1918 three bedroom house that I bought in September. The room that was advertised as the master bedroom is so big that I couldn't see using it for a bedroom and instead, use it for my office and sewing/craft room. It is big enough for the larger quilting setups but I like the look and feel of the grace pro and its not too much more than I need.
There are three closets at the end of the room and one is all shelves, I'm still trying to work out the organization there.