"Every year you get a letter from your landlord telling you how much more you have to pay. I'd been going through that cycle every year and realized, wow, this is only going to go up. For Nathanson, who grew up in Brooklyn, living in the city was a lifelong dream: When you get to Manhattan, you've made it in New York."
"Moving up would be just riding the hedonic treadmill. You get a bigger place now, and a few years later you'll want a bigger place again. We consciously decided to get off that treadmill."
"By most financial standards, they had 'good debt' - the kind of loan personal finance experts often advise borrowers to keep, especially if they can earn higher returns investing elsewhere. But in 2024, the NYC-based couple paid off their home anyway."
Josette Chang and Alexander Nathanson purchased a Midtown East apartment in 2018 for approximately $770,000, financing half the purchase price at a 3.75% mortgage rate, later refinanced to 3.1%. Despite having what financial experts consider 'good debt,' the couple chose to pay off their mortgage entirely in 2024. They initially planned to upgrade to a larger apartment but recognized this would perpetuate the hedonic treadmill of constantly wanting more. Eliminating their mortgage payment provided significant lifestyle benefits: Chang was able to quit her job and Nathanson reduced his work hours. The couple prioritized peace of mind and financial flexibility over the potential returns from investing their cash elsewhere.
Read at Business Insider
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