People looking for property may not know the meaning of SoHo, SoFo and SoVo units, and often get confused. Here is a simple guide you can share with your customers to help them pick what is best for their needs.
SoHo, SoFo, and SoVos all have one thing in common: they are all office units designed and used for commercial purposes, but each have traits that make them unique. Here is a breakdown of each one for you!
Similarities
These 3 property types are usually located in cities’ business and commercial hotspots. They are often built near shopping malls and transport stations like LRT & MRTs for your convenience.
Their interiors are built like condominiums, with amenities like bedrooms, living rooms and fully-fitted bathrooms. This is why these kinds of properties are prefered by single working millenials and young couples or families.
As they have a commercial title, you will have to pay for commercial rate unit assessment, water, electricity and phone bills. Do be prepared as these will be higher than residential rates.
Differences
While they all have commercial titles, Soho units are considered housing accommodations and are protected by the Housing Development Act (HDA) with a standard Sales and Purchase Agreement (SPA).
Do note that because there's no HDA protection and standard SPA for SoFo and SoVo units, any disputes on false advertising, defect liability periods, insurance premiums etc. will have to be settled in court, based on the SPA you sign.
What’s a SoHo?
SoHo is an acronym for 'Small office, Home office'. These units can be used as either offices or homes or both. Many young singles, young couples and new professionals take up Soho units for the convenience of having their living area with their workspace. They are modest in size and do not need large floor areas due to innovative interior designing which makes the most of small spaces. They often have a living room, kitchen, bedrooms and bathrooms.
What’s a SoFo?
The term stands for 'Small office, Flexible office'. They are similar to SoHo’s as they are flexible and can be used as offices or homes, with condominium style amenities as well.
However, SoFo units are unique because they have an internal partition (a wall that can be broken down) which gives you the option to customise the place as you wish. You can also buy 2 units side by side and connect them if you'd like more space.
What’s a SoVo?
The term stands for 'Small office, Virtual Office'. They are fully equipped with telecommunication and infrastructure that lets business start-ups operate immediately. Unlike SoHo and SoFo units, SoVo's don't have bedrooms and living rooms. You can't legally live in them as they are only for commercial use, so you are not allowed to stay overnight if the management does not allow it.
Purchase Loans
The maximum loan margin of finance for Soho, SoFo, and SoVo properties tend to be lower than the residential loans (which are typically 90%). And their loan tenure is often shorter too (around 25-30 years).
Also note that since your SoHo, SoFo or SoVo property is commercial, they are not subjected to the same limitations of a 70% maximum margin of finance like residential loans after purchases of a 3rd property and beyond.
Utility and maintenance bills
Loan margins for SoHo, SoFo and SoVo units may be lower than residential properties, but their utility bills, commercial assessment bills, and quit rent are higher. This is because they are built on commercial land and must follow commercial property laws.
It is possible to convert your water and electricity bill rates from commercial to residential, but this is approved on a case-to-case basis.
Now after all that new information, here’s a small table to summarise their differences!
.svg)
.svg)
