Here are three facts you should know about condos before you invest in one.

I think I'm qualified to talk about this, since we have had almost 15 condos for over 20 years.  There are potential minefields here although condos can be excellent investments.

1. Beware of Homeowner Assosiation Fees

I have friends who are  thinking about buying a $600,000 condo in Nashville.  I looked at it, and I like it.  It's got location, it's new, well built, etc. 

There is one thing that puzzles me; even bothers me.  The homeowner's fees are very low for that type of condo.

"Have you thought about the fact that your fees may go up?" I asked my friend.

"Yes, we're expecting that."

I have a feeling she doesn't expect the fees to really jump up. 

I think they will.  I think the fees are low now to attract buyers and with increased inflation get ready- they're going to probably explode. 

2. Bad neighbors

Everyone is living in a cramped space, very close to each other. Some people can't handle that.

I have a tenant now who calls me every few days complaining about the neighbors above her and her claim their water heater is too loud. 

I know, it doesn't make sense, but people, especially those in condos, aren't always reasonable.

Should I mention there is a lot of noise in these buildings?  They're not libraries.

3.Dumb decisions made on how to spend your money

Okay, I've often called Homeowner Associations- Communist Central Committees.

 I know it's a little harsh, but just wait until you get in the ring with those people who want to spend lots of money on tulips, and repaving the tennis courts because they've become a dog restroom, etc.

All of these add-ons can   make your fees go up fast.

Your money can be wasted.  That's the bottom line.

People like that have to be stopped and that's why you have to get elected to the Homeowner's Association Board which means a lot of your valuable time will be taken up in futility exercises.

So which will it be?  Your money or your time?

Am I saying not to invest in condos?

No, but I'm saying you need to make sure you do all your due diligence first.  It is vital you know exactly what you are getting into and where your money is headed. 

Popularity: 7% [?]

• Can I Make Real Money With Adsense? Can I make Real Money with Adsense? In this short article, I am going to show you that you can make money with Adsense program. First what is Adsense? This is an advertising model made popular by Google whereby they place some codes or scripts on your site that generates......
• Money Question: What Would you do with a Windfall? Part 3 Yesterday, I published part 2 of What Would You Do With a Windfall. If you missed that, it might be worth clicking on that link back there to catch up. What did I ask the bloggers? Simply this: Where is the single best place to invest a $50K after-tax windfall......
• Is Home Ownership Still the American Dream? Photo courtesy of Oracio Alvarado Over the last couple months two long-held truths of the financial world have been turned on their heads.  One, money market mutual funds can't lose money, and two, the value of real estate always goes up.  Unfortunately, many have discovered neither of these "truths"......
• Should I Buy A House and Take Advantage of Low Interest Rates Every few months, someone wants to know if its a good time to buy real estate. A reader asked an interesting question: Interest rates are artificially low and we won’t see rates this low for a long, long time. What are your thoughts on buying vs renting for a first......
• Money Myths and the Importance of Thinking for Yourself When I sat down to write Your Money: The Missing Manual, I knew I wanted to start with a chapter on happiness. (Well, to be fair, I was going to conclude the book with this chapter; my editor suggested moving it to the beginning, which was a stroke of genius.)......