The problem with condominiums is that they are not as safe an investment as an independently standing house, although those too are not really investments anymore. The condo problem is that lenders are not allowing refinancing if the condo is less than 70 percent owner occupied. Well that is a hell of a mess isn't it?

Just remember, when there is easy money, condos seem like a great investment. In reality they could be a bad investment and you may end up having been legally swindled.

The big lie was this, that house prices would always go up, that real estate is always a good investment. But the red hot appreciation of prices was based upon a regime of easy money lending and artificial demand.

Now the government thinks they can rekindle demand simply by providing some supply of loans. I would suggest that this will be another mini bubble if they succeed. I would stil stay away from condos because we are far from being out of the woods. Alt A and Option Arm loans reset big time starting in later 2009 and peaking in 2010 and all of 2011. So, watch out because lending, interest rates, the value of the dollar and the stability of our economy hang in the balance.