3 Year UPDATE to "Have soaring real estate prices changed your FIRE timeline?"
Back here again for a 3 year update to this thread.
To recap, I bought a house at the very start of the pandemic, put an offer May 2020, and closed August 2020.
So after almost 4 years, the biggest thing that stands out to me is how costs for owning a house have simply exploded. Home prices have also been hitting all tiem highs recently but there is no easy and cost effective way to extract the equity from the house.
I don't even see an exit at this point, as I am "stuck" in this interst rate and buying anything else seems out of the question. Rents on the other hand look like a good option.
Insurance premiums have more than doubled since 2020, without any claims and living in a low risk area. While costs for parts have stabilized a bit, the cost for labor for any home improvement and reapir services remain quite high. Just as an example, recently received a quote for replacing a 3.5 ton HVAC unit for almost $13k. This is one of 4 older units that will need reaplcement soon.
So TLDR after 3 years: Amazed that higher interest rates have not dented prices at all, but costs of home ownership have absolutely exploded. While the house price reflects nicely in my NW value, it will be difficlut to manage cashflow if costs keep increasing. In the aggregate, renting is looking like an increasingly good option to FIRE.
2 Year Update:
1 Year Update:
Original: