What are SoHo, SoVo and SoFo commercial properties? You may have heard of these different terms in the property market but do not know what it really means.
These property units are desirable to the younger generation like the millennials as they can be used either as a workspace or home. In this article, we will explain the differences between these properties.
SoHo is a small office/home office where in most cases, young singles, newly-weds and professionals who are just starting in their careers usually reside. SoHo units can function as both a home and a workplace as it incorporates the living area with the residents’ workspace.
Although small in size, it still comes with bedrooms, fully-fitted bathrooms and a living area. Thus, it is an ideal unit for self-employed individuals or small businesses with less than ten employees.
Owners should be aware of their utility bills as they may be charged based on the commercial or residential rate as it is a commercial property that can be used for residential purposes.
SoFo is a small office/flexible office that offers enhanced flexibility regarding how the space is being utilised. Owners get to decide and customise the space according to their preferences as there is an internal partition that can be broken down in this type of unit.
Owners also choose to enlarge the space of their property by buying two units side-by-side and later creating an internal connection. If layout and design is something you look out for, then you could consider purchasing a SoFo unit.
SoVo is a small office/versatile office that is suitable for commercial purposes. Although it is not as flexible as SoFo, it comes fully equipped with telecommunication and infrastructural facilities to help any start-up business for a smooth transition.
The downside to owning a SoVo unit is that all utility bills are charged based on commercial rates, making it higher than residential. Since it is only for commercial use, the owners do not have the right to stay overnight in the property.
So which should I choose?
Before you make the big decision to purchase, you need to be aware that SOFO and SOVO units do not have the standard Sale and Purchase Agreement (SPA). The reason for that is because they are not regulated in the Housing Development Act (HDA).
On the other hand, SoHo units have a commercial title but are used for residential purposes. Thus it is protected by the HDA since they have a standard SPA. This is the biggest difference between these three properties and what makes SoHo units more desirable.