Friday, July 31, 2009

Poor Phil

Homeowners can no longer rely on rising house prices to trade up, says Location's Phil Spencer

The TV property expert who had his fingers burnt in the slump warned homeowners that they can no longer count on rising prices to help them trade up. Phil Spencer, co-host of Location, Location, Location, said buyers now need to look for homes that will accommodate them for years, and for properties where value can be added. 'It's not going to be enough to buy a property and think, I'll own it for two or three years, it'll go up in value, and I'll be able to trade up the ladder.' Mr Spencer had first-hand experience of the slump when his homefinding business, Garringtons, went bust earlier this year. He said he had been left in debt from the venture, but declined to say by how much.

Posted by little professor @ 09:29 AM (830 views)
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17 thoughts on “Poor Phil

  • I’ve told this to a number of people I know looking to move onwards and upwards in the property ladder but they remain adamant that they’ll be shot of their cramp properties ‘as soon as things start to pick up again’.

    Basically, we’ve removed around 20 years worth of gains from the property market at the current level. So unless there are really huge falls in the prices of property, trading up on the back of rising values really won’t be an option.

    For once, Phil Spencer is correct in this assertion.

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  • japanese uncle says:

    Incidentally, I seem to have read an article in the Daily Mail about K.Allsop’s alleged mustache, a few days ago.
    Retributive justice after all.

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  • No doubt Phil can use his ‘property ramper’ pals in the media to help pay off his debt. It’s a start Phil.

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  • I don’t get it. If you want to trade up and house prices fall say 10%, your £100k house is worth £90k, but the £200K house is worth £180K meaning you only need another £90K as opposed to another £100k to trade up. Surely falling house prices are in the interest of those wishing to move upwards?

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  • Several of the comments make the point that the basic premise of the article is wrong. If your house goes up 20% and the larger house you want has also gone up 20%, then the gap between them that you have to fund from elsewhere has also gone up 20%. The bubble might have made millions of existing house owners six figure tax-free profits on paper, but it has made moving up to a larger house harder, not easier.

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  • japanese uncle says:

    lp

    LOL This makes even bigger news.

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  • Orcusmaximus says:

    @monty032 – absolutely agree. Falling property prices make it cheaper to move up, not harder. Just shows how clueless Phil Spencer is.

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  • exactly what 4.monty032 said…

    If you own a “£100,000” house and the next house up the lader is £200,000 for example; you would need an extra £100,000 to move up the ladder

    If there is house price of inflation of 10% in one year

    You could sell your house for £100,000 + 10% = £110,000 (paper profit £10,000)

    But the house you are after is now £200,000 + 10% = £220,000 (bigger difference of £110,000)

    Why do stupid homeowners “rejoice” when house prices increase more than wage inflation?

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  • Phil is so delightfully behind the curve – in a couple of years this ‘property expert’ will reveal to us all that house prices have fallen..

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  • ‘It would have been nice to see it coming, but it happened so quickly it caught everyone by surprise – the Chancellor of the Exchequer, all of the banks, they didn’t see it coming,’ he said.

    WTF? How is this news? Why are muppets like this given any airtime whatsoever? “Experts” are supposed to tell you what is going to happen, not what DID happen and cost them a fortune.

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  • Burt Reynolds has let himself go hasn’t he…

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  • Paul,

    Quite offensive to Susan Boyle but other than that really funny 🙂

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  • “Phil is so delightfully behind the curve ” Uncle Tom – there is no curve acording to these guys its just extraploation of the prior trend. Thats why prices can never go down – whoops but they have erm now what?!?!

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  • shining wit says:

    How on earth am I going to buy all these now then?

    a new 4 x 4
    An exotic holiday
    My children’s private education
    My second home in spain/france

    It’s a good job no-one saw the property crash coming otherwise some people may have to explain why they kept saying that property prices only go up !

    Right then, where did I put that packet of microwavable gruel, the kids are looking a bit gaunt !

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