Current economic conditions have made life challenging, to say the least for many families. At the same time, the recession has created some interesting opportunities for people who are interested in getting into the housing market. Mortgage interest rates are low, and the federal government is offering tax credits for buyers. What do you need to consider before you decide to take the plunge?

Here are five tips you need to keep in mind:

1. Consider Housing Costs

With interest rates currently at historically low levels, it may be tempting to put in an offer on a home that is a bit of a financial stretch for you. Along with the mortgage payments, you will also need to budget for property taxes and utilities. There will also be expenses connected with maintaining the property, even if you are not planning on doing any renovations right away. Consider these costs carefully before you make an offer.

2. Making a Long-term Commitment to a Home

While right now may be a good time to consider buying a home, keep in mind that prices may drop further in the short term. If you know that you will be staying put for several years (at least five), then now is a good time to think about buying a home. On the other hand, if you see yourself moving in the next couple of years, you may want to hold off on committing to home ownership for the time being.

3. Think of Your Needs First

If you have checked your budget numbers and you decide that you can afford a home and you will be staying in one place for the foreseeable future, you can start figuring out what features are more important to you in a home. Some home buyers want to live in a certain area or close to shopping and recreational facilities. People with children will want to find out about day-care facilities, schools, parks, doctors’ offices, etc., in relation to the house they are considering. These kinds of the things are “must-haves” when you are looking for a home.

4. Your “Wants” Are Not Needs

Just about everyone has a list of things they would like to have in their “dream” home. As long as you are willing and have the means to pay for them, it’s not a problem. You may want to keep in mind that it’s perfectly all right to get into the housing market with a starter home, build up some equity, and then move up to the big honking house that you really want. You may “want” the home theatre, whirlpool tub, and granite counter tops, but do you really “need” them?

5. Shop Around for the Best Mortgage

There are many options available to home buyers who are looking for a mortgage. Not only are there many lenders offering financing, but there are different kinds of mortgages offered by the same lender. Consider the interest rate, payment options, and amortization period, and any required fees before you sign any mortgage documents.

The recession may translate into a buyer’s market, but you still need to be smart about it. Consider your budge, how secure your job is, and separate the things you must have from the stuff on your wish list to make the right choice for you.

Ever drive by a house and wonder what possessed the homeowner to purchase such an ugly house? Even worse, wonder who would use that bright pink or green paint and think it added curb appeal? Not sure what I’m talking about? Check out this gallery of truly ugly homes.

Check out this McMansion located in a Texas suburb.

Most new homes have many angled gables, this architect clearly wanted to go for something different with the round look.

When your choosing exterior paint, what colors come to mind:

I’m thinking yellow and green wouldn’t be my first choice.

Here’s another home owner who wished to have his house stand out:

Maybe he wanted to win one of those ugly house contests?

I’m not sure what’s going on here…

Only that this house in Vietnam is one tall, skinny butt ugly blue house.

And I’m really not sure what to say about this one….

…except that its uglyness speaks for itself.

This house in Minnesota looks like it’s going every which way doesn’t it?

And they’re all pointing up. Lots of angles going on there.

What would you call this color?

Tan? Brown? I’m really at a loss for words here.

This McMansion is Queens, NY was squeezed on a regular sized lot between two smaller homes.

It’s a stunner, isn’t it?

Here’s another Queens McMansion.

What it lacks in style and substance it makes up for in size. And really that’s all that matters,isn’t it?

Housing prices may be going down in most neighborhoods, but that doesn’t mean there aren’t people willing to spend a lot of money on real estate. In fact, for some home buyers, money is no object. Check out some of the most expensive homes in the world.

8 St. James Square, London England

This property, with over $226 million is currently under renovation. The apartment will be  carved out of a seven-storey 1930s office block, which will be used to create a total of six extravagant apartments. This is for an apartment, people!

William Randolph Hearst’s Home, Beverly Hills, California

This six acre Beverly HIlls home is the former home of newspaper magnate William Randolph Hurst.  The home is worth $165 million today and boasts 75,000 square feet of living space including 29 bedrooms and 50 bathrooms.

Tim Blixseth’s Montana Mansion

Still under construction, this mansion in Bozeman Montana is worth $155 million. The mansion is located near an ultra-exclusive ski resort and will boast 10 bedrooms on 160 acres. A private gondola will deliver the host and his guests to the ski resort or golf course.

Bran Castle in Brasov Romania

Worth $140 million, this is the real Dracula’s Castle. This 20 acre home built in 1212 was once home to Vlad the Impaler.

Updown Court, Surrey England

Worth a mere  $138 million Updown Court boasts 103 rooms and 58 acres of gardens.

Hala Ranch, Aspen, Aspen Colorado

Here’s a nice little ski cabin. Located in Aspen the  Hala Ranch, which is owned by former Saudi Ambassador Prince Bandar bin Sultan bin Abdul Aziz, is worth $135 million. This 55,000 home has 15 bedrooms and 16 baths, plus stables, a tennis court and of course, a swimming pool.

Maison de L’Amitie, Palm Beach FL

Boasting 475 square feet of ocean front property, it’s easy to see why this beach home is worth $125 million.  The price includes a 100 foot swimming pool, ballroom and conservatory.

Tranquility Mansion, Lake Tahoe Nevada

This 210 acre property, worth $100 million, comes complete with 3,500 bottle wine cellar, atrium, 19 seat movie theater and indoor swimming pool.

Waterfront Mansion, Istanbul Turkey

Inside this 30,000 square foot $100 million mansion you’ll find 64 rooms with waterfront views.

Bishop’s Avenue, London England

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The cheapest home on our list is worth $99 million. This 28,000 square foot little home in London comes complete with glass elevators, a double front staircase, swimming pool with glass bridge and a Turkish bath big enough to seat 20.

In the United States $250,000 can get you a nice little home, plot of land, or apartment. You can’t always find luxury real estate at this price, but there are still some nice properties to be found. Ever wonder what kind of real estate can be found at this same price in different parts of the world? Check out five properties located around the world:

Sometimes you can achieve a major lifestyle upgrade – or downgrade – just by moving. The same salary can mean a life of poverty in one area, and living in the lap of luxury in another.. You just have to know where to live.

Take real estate, for example. In Princeton, New Jersey $350,000 won’t even get you a townhouse. In other parts of the country you can do quite nicely. Let’s take a  look at what $350,000 will get you across the U.S.

Princeton, New Jersey – Princeton isn’t known for its cheap real estate. If you want a few bedrooms and a couple of baths, you’re looking to spend at least $1 million. For $350,000 however, you can own a cozy  townhouse complete with 3.5 beds and 2.5 baths. There’s a pool and tennis courts in the community so you can expect to pay an annual maintenance fee as well. Property taxes are high in Princeton but then it hosts the best schools in the country.

In New York City, $350,000 will get you a one bed, one bath apartment on the Upper West Side. The apartment boasts 836 square feet and four rooms.

Head West and North to Lapeer, Mi and you’ll find you can live pretty good for $350,000. This 2,700 square foot, 3 bed, 2.5 bath McMansion offers golf course views from your large brick patio.

Lawrence, Kansas – This aint no little house on the prairie. In Lawrence, Kansas you can purchase an open and airy contemporary with golf course views for your $350,000. The property only boasts a half acre but how much land do you need when inside you have a spacious 3032 square feet.

Montgomery, Alabama – You get more bang for your buck down South. This spacious four bed, three bath home can found for the same price as a small New York City apartment. There’s no basement, but you’ll get a fireplace and some hardwood floors.

Chicago, Illinois – Things are bit more pricey in the windy city. Here $350,000 will buy you a 1 bed 1 bath condo. We’re talking four rooms including a kitchen/dining room condo, and hardwood floors. 

Billings, Montana – For $350,000 one can buy a charming ranch in Billings. 3 beds, 3 baths and not quite an acre, but the fireplace and hardwood floors make up for the lack of acreage.

Napa, California – If you want to do live the good life in Napa, you’ll to pay. Still for $350,000 you can live in a quaint 2 bedroom, .15 acre ranch. So you get no land, a small price to pay for wine country.

Las Vegas, NV – You can get a nice house in Las Vegas for $350,000. This 4 year old house ranch sits on a little less than a quarter acre.  4 beds, 3 baths, hot tub and gorgeous patio, you get a lot of house for the same price as a condo in Chicago.

El Paso, TX – This beautiful historic home features five beds, a bath and a half,  and hardwood floors throughout  You could probably get this same house for close to a million in Princeton, New Jersey or Cambridge, Massachusetts.