Prioritise space or not?

[BluLagoon]

We are a family of 6 squeezed into a small rented 3 bed and finally in a position to buy something.

We have the option of a shared ownership re-sale, at 70% share. Pros are mod cons and new kitchen but worried about coming to sell in the future with such a large share. SO properties always seem to be overpriced too.

OR a large (130sqm as opposed to 100sqm) flat above a commercial premises. It has 4 bedrooms, a small garden so that would do us and the extra space is really attractive but again is it a wise investment or lose money/ hard to sell?

The mortgage would be about the same for each property.

WWYD?

4 bedroom flat sounds better, mod cons can be added over time.

i'd go with the larger flat assuming it is in a reasonable location

what is the commercial premises below? a quiet clothing shop or a late night kebab place?

Which would you be happier living in?

Worry less about the resale value and how much money it might increase by and more about the happiness while living there.

If you are happy, that is better than any monetary value. If you hate living there, any extra money you earn will unlikely offset in the years of misery by the time you come to sell.

Someone will always buy it - shared ownership or above a shop - if it is priced at the right level. If it doesn't sell, the price is too high. That is always the answer

My understanding of SO is that they normally lose money if you sell in the first few years only because they are no longer new build so don’t attract that new build premium anymore. But if you are buying one second hand, you should benefit from that price reduction yourself.

Both properties could potentially be a bit tricky to sell in future but that will be reflected in the price you are able to buy them for today. I agree with @MojoMoon that you should focus more on which one you would be happiest living in.

Non-SO 4-bed flat sounds a better option but the commercial premises could be an issue. Some mortgage lenders don’t like them and I’d be looking into issues with noise, waste etc, depending on the type of commercial premises.

I wonder about pricing SO, it seems the housing association usually sets the price and I notice they are often a bit over priced.

The flat is over a climate charity base so no obnoxious smells, rats etc but wonder about change of use in the future.