The Barefoot Investor has offered some tough advice after a nurse with a multi-million dollar property portfolio revealed she was unable to afford a $30,000 dental bill because she was ‘asset rich’ but ‘cash poor’.
Sue, 43, wrote to Scott Pape confessing she feels trapped despite owning a home and two investment properties with her lawyer husband.
‘I am in tears as I write this. We own our home and two investment properties. We are asset rich, cash poor, mortgaged to the hilt,’ she wrote.
‘I need dental treatment. Implants are just the start. It will cost upward of $30,000.
‘I’m a nurse, and I fully understand the impact bad teeth have on your health. Not to mention embarrassing, and at times painful.’
Sue said she had spent years putting her children first and her own health last.
While the couple’s investment properties have risen in value and cover their own costs, the bank will not allow them to refinance.
At the same time, Sue and her husband are reluctant to sell, fearing they would lose a significant amount of money through capital gains tax.
Scott Pape (pictured) questioned how a professional couple with more than a million dollars in assets had found themselves unable to pay for essential healthcare
‘Our primary mortgage is $7,000 a month. Childcare $3,000. We don’t have fancy cars. I shop at Kmart. There’s nothing left,’ she said.
‘So do I dip into my super (I have $416K)? Fly to Thailand? What should I do? Don’t just say nothing.’
Pape questioned how a professional couple with more than a million dollars in assets had found themselves unable to pay for essential healthcare.
‘You’re a professional couple with over a million dollars in assets, but you can’t pay for your health?’ he said.
‘If I were in your situation I’d sell one of your investment properties.
‘Pay the damn capital gains. Pay for the dental work. Maybe give yourself some breathing room so you don’t feel so stressed all the time.
‘Smile. You deserve it.’
Pape told her it was time to prioritise her own wellbeing.
‘Seems like you’ve spent your entire adult life dismissing yourself and your needs – so I sure as hell ain’t going to do that,’ he responded.
The Barefoot Investor recommended the desperate nurse sell an investment property
‘You’re not talking about getting flashy veneers for Instagram, but treating a genuine health concern that will have real ramifications for you as you get older.
‘Stop asking for permission. You’re a grown woman. There is no question you need to get this done – the only question is how to pay for it sensibly. And sensibly rules out super. Taking $30k today could easily be $200k at retirement.’
He warned that withdrawing money from superannuation should be off the table entirely and urged Sue to avoid travelling overseas for cheaper dental work.
‘If I were in your shoes I wouldn’t do it. Yes it may be cheaper, but if something fails, fixing it here could end up costing more than doing it locally,’ he said.
