Phil Spencer, he of L,L,L fame makes me laugh with his advice .......?

[daveg]

watching a show which was screen last night and filmed only a few months ago had a couple on his Location, Location show.

Woman in the couple desperate to move into her dream place but doesnt have the money so has to settle for 2nd best.

Solution?

Buy 2nd best now as a stepping stone, then when your house increases in value trade up to the dream house she's always wanted.

'Great Idea' she says, and like the fool she is, buys the property.

Can someone explain to me how lets say, she bought this place for £400,000 (she did actually) and lets just assume somehow we fight all the laws of economics and somehow its worth £500,000 in 5 years time.

So she's made £100,000 and can now trade up to that dream house.

Only one problem.

Doesnt that mean the £500,000 dream house shes always wanted, is now worth £600,000???

Which part of that does Phil 'Im the property expert even though my property business, Garringtons went bust last year' Spencer , not understand?

 

[MichaelY]

Ah but she may have been thinking buying the lotto lout Michael Carroll's house which dropped a huge amount in price. Not all property increases in price.

 

[abro420]

Ha! That's exactly what happened to America's economy. You just described the 1st half of the economic meltdown also known over here as "the housing bubble". Be careful over there because not all Americans were this stupid but they found enough of them to creeate an affect worldwide when it naturally collapsed.