Did you know that all-cash purchases of homes now makes up 33 percent of the market? That's a lot of cash buyers, and while a good number of those are big investors scooping up deals while the market is near the bottom, others are regular buyers like you and me who are changing the way they spend money.

Exit the McMansion and enter the mini-cottage!

People all across the nation are coming up with creative new ways to afford homes. From buying smaller to becoming your own contractor, homeownership may be closer than you'd think!

What if you could own a brand new home, mortgage-free, for under $50,000? There is a growing subculture of homeowners who are doing just that.

Micro-cottages by definition are 1,000 square feet or less, the same size as many apartments across the nation. But small homes, under 2,000 square feet, can be great and affordable options as well.

In today's economy, there have been reductions in both the cost of labor and materials, so whether you choose to hire a local laborer to do the heavy lifting or whether you do the work yourself, now is a great time to build.

Many brave buyers have decided to build their homes by the sweat of their own brow. Hundreds of books and websites are dedicated soley to this cause. By shopping around for reliable, but reasonably priced labor, by gathering bids before hiring each contractor, and by buying discount cabinets or flooring, you can save yourself thousands of dollars.

Many of these homeowners are able to build their own home, mortgage-free, for anywhere from $10,000 to $50,000. Sounds impossible, doesn't it? These homes range in style and size, but all carry the same tune. They are small, simple, void of all frills, and are rent-free.

Let's do the math. If you build a micro-cottage for $30,000 and your rent has been $1,000 a month -- in less than three years you will have paid for your investment and will now be living mortgage and rent free. No, you will not have a fancy show house with all the upgrades, but you will have a solid roof over your head for many years to come. For families with depleted credit or small budgets this is a great option. It goes against much of the nation's "keeping up with the Joneses" mentality, but it could be a step in the right direction for this country of consumers.

Many experts estimate a homeowner can save up to 25 to 30 percent simply by acting as their own general contractor. If you are willing to do the work, this could be a great way to save money.

You'll save even more if you take on the task of doing the labor yourself!

Just take a look at this great option, which gives you 3 bedrooms and plenty of space. No, these homes are not the show homes, but they are simple styles reminiscent of days past. How much room does a family really need?

And a great resource for small house plans, and success stories from other do-it-yourselfers, can be found at countryplans.com.

If you are in need of affordable housing, be sure to think outside the box and consider what you can if you really put your mind to it!

Published: March 23, 2011

Use of this article without permission is a violation of federal copyright laws.

Carla Hill, M.A., works on the Realty Times staff as Managing Editor for our online publication. She also is Producer for the real estate news channel, seen daily on RealtyTimes.com and on video newsletters nationwide.