Thinking of purchasing a SoHo unit but unsure of what it entails? Let us break it down for you.
In the past decade, a new trend has emerged in the real estate market where property developers started building versatile spaces that blend the functionality of a home with the convenience of an office.
One popular example is Small Office/Home Office (SOHO) properties which have started gaining popularity again post-pandemic. These types of properties are designed to cater to the growing number of entrepreneurs, freelancers, hybrid workers and small business owners who are seeking the convenience of working from home while maintaining a professional atmosphere.
In this article, we will explore the concept of SOHO properties, their benefits, and the reasons behind their increasing popularity.
1. Convenience
Since SOHO properties are specifically designed to accommodate individuals who desire the convenience of having a dedicated workspace without the need for a separate office location, they are typically situated in prime locations. This means that they are either developed close to the city centre with easy access to the nearest LRT or MRT stations or next to a shopping mall.
Generally, most developers will still provide some amenities and facilities for the wellness of the occupants such as swimming pools, fitness centres, parking spaces, security services, and shared common areas, much like a condo. These amenities enhance the quality of life for residents and can contribute to a more comfortable and convenient living and working experience.
2. Flexibility
SOHO units are also typically smaller (400 sqft to 800 sqft) than condo units, therefore you may experience a lack of space and certain limitations when it comes to functioning as a home. But they have all the necessities a home requires including a living room, bedrooms, and full-fitted bathrooms and facilities and amenities akin to condominiums.
SoHo spaces provide flexibility in terms of layout and usage. They can be customized to meet the specific needs of the occupants, whether it’s a home office setup or a small office space for a few employees. This flexibility allows for efficient use of the available area.
3. Protected by the Housing Development Act (HDA)
Unlike ‘Small office, Virtual office’ (SOVO) and ‘Small office, Flexible office’ (SOFO), SOHOs have a standard Sale and Purchase Agreement (SPA) despite its commercial title, which means they are protected by the Housing Development Act (HDA). Having protection from the HDA encourages transparency and accountability by both parties and protects purchasers’ interests. Furthermore, HDA will be the mediator to address any future conflicts, disputes and claims between buyer and developer.
4. Loan-To-Value Ratio (LTV)
Since SOHOs are protected under HDA, the likelihood of obtaining a 90% LTV is high, as long as it is your first or second property.
Due to the lack of HAD protection, commercial titled properties’ LTV would typically fall within the range of 70% and 85%. Of course, when investing in a property, you’d want to obtain a higher LTV to reduce the initial capital invested as a down payment.
5. Cost-Effective
Those who are self-employed, running their own business, or working in the gig economy, have the flexibility to work from home and understand how cost-effective telecommuting can be in conducting their business without affecting productivity.
With flexible hours and remote work arrangements, this also means a rising number of people are using their homes as workplaces. On top of that, working in the same location also eliminates the need for a daily commute, which helps save time and money.
6. Commercial title
As a SOHO is primarily an office space that doubles as a home, it falls under the category of commercial property. With a commercial title come utility bills, commercial assessments and quit rent that are higher than residential units.
Although your TNB and Indah Water Konsortium utility bills can be converted from commercial rates to residential rates on a case-by-case basis, you will need to prove that your unit is used for residential purposes.
In conclusion, SoHo spaces offer affordability, flexibility, and convenience but may lack space and professional image. The choice between SoHo and a condo ultimately depends on individual preferences, financial considerations, and specific business needs or living arrangements.
Development projects such as J.Satine SOHO understand the evolving needs of property buyers who are working in the gig economy, small business owners, freelancers, etc., and by redefining the concept of a modern workspace by offering professionals the best of both worlds – the comfort of a home and the functionality of a traditional office.
With its thoughtfully designed spaces and thriving community, J.Satine SOHO has become a preferred choice for those seeking a productive and inspiring work environment. As the demand for flexible work arrangements continues to rise, J.Satine SOHO remains at the forefront, empowering professionals to thrive in the new era of work by offering a multitude of modern features, highlighted by the innovative JaGaApp, which simplifies unit management matters. Offering layout sizes between 546 sqft and 966 sqft at an affordable starting price, the spaces are meticulously designed to enhance productivity and comfort.
Find out more about what J.Satine has to offer by visiting the website or their showroom to experience it first-hand.
