diff --git a/SoftwareUpdateVM.md b/SoftwareUpdateVM.md
index 60ee01b9..56ed21d9 100644
--- a/SoftwareUpdateVM.md
+++ b/SoftwareUpdateVM.md
@@ -16,6 +16,8 @@ In addition to saving on the disk space, and reducing domain creation time, anot
 
 The default template is called **fedora-14-x64** in Qubes R1 and **fedora-18-x64** in Qubes R2 Beta2.
 
+The side effect of this mechanism is, of course, that if you install any software in your AppVM, more specifically in any directory other than `/home` or `/usr/local` then it will disappear after the AppVM reboot (as the root filesystem for this AppVM will again be "taken" from the Template VM). **This means one normally install software in the Template VM, not in AppVMs.**
+
 Installing (or updating) software in the template VM
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