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What is the Difference Between SoHo, SoVo and SoFo?

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What is the Difference Between SoHo, SoVo and SoFo?

  • 14 Jul 2023

The fact that SoHo, SoVo, and SoFo are intended for commercial use unites them all. Each of them stands out from the others thanks to their unique individual traits. Let's examine each development in more detail to discover its parallels and discover ways to benefit from it.

Property Similarities

These properties are typically located in busy urban districts where the majority of businesses and trade are conducted. They frequently surround or are next to high-density areas like shopping centres.

They are probably more popular with young families, young couples, and single working millennials who want to start owning a property due of its residential condominium-style amenities.

Owners must be ready to pay the unit assessment as well as commercial rates for water, electricity, and telephone since all of these units have commercial titles. Remember that these prices are frequently higher than those in neighbourhoods.

Property Differences

Due to its commercial title, SoHo's are shielded by the Housing Development Act (HDA) by having the standard Sales and Purchase Agreement (SPA). Most SoHo’s are then utilized for residential purposes.

Potential buyers, however, could be concerned about the SoVo and SoFo units' absence of a conventional SPA.

Interested in purchasing SoHo, SoVo, and SoFo properties for yourself? View our huge selection of real estate listings here!

Let's look more closely at what each development entails and how you may use it to meet your urban lifestyle so that you can decide which type of property you want to pursue.

What is a SoHo?

'Small office, Home office' is referred to as SoHo. Both residences and offices can be used in SoHo apartments.

Due to the ease of mixing their living and working spaces, young singles, newlyweds, and emerging professionals typically opt to stay in SoHo apartments. These strata-titled commercial spaces can be used for both residential and commercial purposes. Their tiny sizes are typically the result of a mixture of lifestyle and economic variables.

SoHo's don't need large floor areas and often include a living room, bedrooms, and bathrooms because of its creative interior design.

What is a SoVo?

'Small Office, Virtual Office' is what is meant by the acronym SoVo. Typically, this compact office is outfitted with the necessary telecommunication and infrastructure resources.

It makes it possible for enterprises to launch straight away. In comparison to SoHo or SoFo buildings, SoVo buildings do not have as many residential-style amenities.

It's crucial to keep in mind that this property can only be used for business purposes; you cannot live there. Owners do not have the right to stay in the property overnight if the management does not permit it.

What is a SoFo?

SoFo is an acronym for "Small office, Flexible office."

A SoFo, as the name suggests, is a compact unit that gives its owners more freedom in how they use their space, whether for residential, commercial, or a combination of the two. A SoFo typically has amenities akin to those found in condominiums.

Every unit has an interior partition (a detachable wall) that enables owners or tenants to arrange their units anyway they see suitable. Owners can buy two units side by side and connect them inside if more space is required.

As commercial assets, SoHo, SoFo, or SoVo units are subject to different homeownership metrics than strictly residential buildings.

The maximum loan margin for SoHo, SoVo, and SoFo properties is normally smaller than that of residential loans, which is approximately 90%, though this isn't always the case. Additionally, their loan terms are often shorter (between 25 and 30 years).

It's important to note that, following the acquisition of the third property and beyond, commercial loans are not subject to the same restrictions on the maximum margin of financing of 70% that residential loans are.

If in doubt, make sure to confirm any information and any inconsistencies regarding the terms of your loan agreement with the bank offering your property loan as well as the real estate developer.

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