(Photo from allaboutgeorge, Flickr.com)

Homeownership certainly has a number of benefits, from the tax advantages to the equity you’ll build in your property. However, the maintenance and upkeep that a traditional single family home requires isn’t for everyone. If you aren’t ready to spend weekends on yard work or home repairs, why not consider buying a condo?

The advantages of owning a condo

As a condo owner, your liability is limited to the interior of your unit – the structure of your building and all exterior spaces are owned communally by the home owners’ association (HOA). What this means for you is that the cost of major repairs – like a new roof or new siding – are shared by all the members of the association, instead of falling squarely on your shoulders. While you’ll still be required to pay for interior improvements and repairs, your overall costs will be much lower than with a standalone home.

But lower repair bills aren’t the only advantage to condo ownership. In addition, your complex may offer community facilities – like a pool, gym or clubhouse – onsite for you to use, free of charge. Your monthly bills may also be lower than single family homes, as shared condo walls cut down on heat and cooling expenses. Finally, condo complexes offer a sense of community you won’t find in your own home – if you’re ever feeling lonely, your neighbors and friends are just a wall away.

What you need to be aware of with condo ownership

Of course, there are some downsides to condo ownership. Let’s take a look at a few of them:

1. HOA Fees

Although you aren’t responsible for many traditional homeowner tasks, you aren’t off the hook altogether. Every month, you’ll be required to pay a home owner association fee which goes towards the maintenance of common areas, on top of your mortgage and tax payments. The size of the fee depends on the association and the level of service it provides, but in most cases, you can expect to pay between $100-400 per month to the HOA.

2. Rules and Covenants

When you buy a condo, you agree to abide by the rules and covenants set forth by the HOA. These may include such things as how you’re allowed to decorate your home, how much noise you can make and whether or not you can rent out your condo in the future. Breaking these rules can result in penalties or fines, and a strict HOA board can make your life miserable if you aren’t prepared to abide by them. Basically, if you need the freedom to choose your own paint scheme, think long and hard about buying a condo.

3. Future Resale Values

Traditionally, condos appreciate less in value than single family homes and often take longer on the market to sell. This isn’t always the case – condos in desirable neighborhoods can turn over quite quickly – but you should be prepared to wait a little longer than normal when it comes time to sell. If potential resale values are a concern for you, you’ll want to do your homework to determine whether a condo or a single family home makes more sense for you.

Image from creativechick.blog-city.com.

Contrary to what you may have heard, many people still dream of owning a home. For those who already own a home, benefits may prove to be even more worthwhile. The only way to really make the most of your equity is to take out home equity loans.

Now that you own your home, you should make use of it and open up that equity. With a home equity loan, you can consolidate debts, make major purchases or investments, and put the money toward home improvements — the money is yours, and you can do as you please.

Strategize to maximize profit

Well, actually, the money isn’t yours yet, but it becomes yours as soon as you sell your home. With all home loans, you have to think of every move you make as something for potential profit. You won’t see the rewards of your hard work and dedication until it’s time to sell, then it all comes back around to give you the biggest financial boost of your life.

With your first home, you probably saved up for years just to have enough to make a down payment, then you spent years — probably decades –  paying off the remaining balance through a mortgage. Ne doubt that home appreciated in value, and now you are in position to use the equity that you have built in the form of a home-equity loan.

Home-equity loans not for everyone

Recently the housing market has suffered a serious downturn, and home values are not quite what they were just two years ago. However, if you have been in your home for a significant period of time and have not taken out a home-equity loan in the past, it is likely you have enough equity to aid your financial situation in a significant way. That being said, not every homeowner should secure a home-equity loan.

You must have a plan and purpose for your home-equity loan before starting the application process. While home-equity loans can be very helpful, they can also cause undue strain on your finances.

Don’t become a statistic

Home-equity loans are not free money. You must repay your home-equity loan over time. Many people get into more trouble with home-equity loans than most realize. Your home becomes the collateral for your home-equity loan. Failure to make payments on time can result in a foreclosure. In today’s economy many homes are being lost because borrowers are not able or willing to make home-equity loan payments.

While home-equity has long been a type of savings account for homeowners, home values have depreciated to the point that homes are not considered the investment they once were. It is best to consider why you need or want your home-equity loan and consider the cost. Home equity loans are a great tool for homeowners if used properly. If not, sacrificing your home ownership may become a reality.

In a first-of-its-kind event, President Barack Obama today held a town hall meeting in the White House that was broadcast live on the internet. He answered questions submitted to Whitehouse.gov before taking live questions from the audience in the East Room.

Taxing questions on taxes

One question from a small businessman in the East Room audience has gotten some attention in the blogosphere. He explained that all the profit he made was being reinvested in his business or going toward paying off his personal loans for his business.

However, he has to pay income tax on that money, even though he never sees a penny of it. To make matters worse, it puts him in the highest tax bracket. He asked what Obama will do to help him.

Might need some fine-tuning

Obama was pretty general in his answer. He assured the businessman that he was committed to lowering the tax burden on small businesses and start-ups. He added that a cut in capital gains taxes for small businesses will go into effect in about five years.

Public schools

Another online question addressed education: How does the president plan to restore education as a right and a core cultural value?

Obama said the education system needs resources and reform. He talked about teacher incentives and being open to charter schools. I thought it was a bit of a curve ball when he threw in: “We have a school system designed for the agricultural era” that gives children three months off in the summer.

Bringing it home

Obama also fielded a question about homeownership.

What benefits are in his programs “to those of us paying our mortgages, but living paycheck to paycheck,” an online questioner asked.

Obama said his efforts so far have lowered mortgage rates and opened up more FHA loans. This makes it easier for homeowners to refinance, he says.