Mixed feelings about a house for my folks

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Am inspecting a house for my parents today in Silver Lake.

It’s a very odd feeling to see them paying $1MM for a house which they could easily have bought for $700-800k just a few years ago.

Obviously, my deal-doer alarms are ringing, particularly because this is a single family house where, if they rented it out, the yield would not come close to being acceptable.

On the other hand:

  1. People need to enjoy their lives, and if having a nice house helps you enjoy yours and you can afford it, you should go for it
  2. I strongly believe Los Feliz, Silver Lake and Echo Park are on a one-way trajectory towards becoming some of the most desirable neighborhoods in the city… there will be cyclical ups and downs, but, over the long term, I believe values will increase at a rate in excess of inflation, which is all you can ask

So, I’m going to the inspection with an open mind. Hopefully, it will end up being a wonderful place for my folks to live.

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