I would get a rack instead of that gym. It will allow you to do more exercises (pull up's, sqauts, calf raises, dips) and will be safer due to the safety catch bars.
And if you wanted to take body building more serious in future, you will already have the most important part (the rack)
It will work out a bit more expensive, but if you bought second hand instead of brand new, you could get a good incline/decline bench, rack and 7ft olympic bar with a decent weight to go on within your budget.
As for not losing weight by lifting weight, that is untrue. Its best to devise a plan where you are doing cardio something like mon/wed/fri, and hitting the weights tue/thurs/sat with sunday off