10 Benefits of Owning Properties Under a Company
Singaporeans have long had a strong interest in real estate. Most investors, however, default to purchasing property as individuals, assuming it’s the most straightforward route. But what if there was a smarter approach that could offer longer tenors, higher leverage, and even tax advantages? If you’ve never considered holding property under a company, it’s time to explore why this alternative structure might unlock greater investment potential.
At WLP, we specialise in structuring mortgage and property solutions for investors and business owners. In this article, we highlight 10 compelling benefits of owning properties under a company instead of as an individual.
1. Longer Loan Tenor
When applying for residential property loans, banks use the Income Weighted Average Age (IWAA), which generally favors the older borrower—typically the one with the higher income. This results in a shorter loan tenor and higher monthly instalments.
However, when purchasing commercial properties under a company, banks often consider the youngest director or key person in determining the tenor. This allows for longer repayment periods and lower monthly commitments, improving affordability—especially when rental income covers the instalments.
2. Higher Loan-to-Value (LTV) Ratio
Residential properties in Singapore are generally capped at 75% LTV. In contrast, commercial properties purchased under a company can potentially qualify for LTVs of up to 90%, depending on the bank and structure.
Take for example a $2 million property. A 75% LTV requires a $500,000 down payment. But with 90% LTV, only $200,000 is needed—freeing up $300,000 for other investments. This can be a game-changer for SMEs or property investors aiming to scale faster without being constrained by cash flow.
WLP helps clients explore such structured financing options, tailored to their risk profile and investment goals.
3. Optimised Asset & Liability Management
Using companies to purchase properties opens up the ability to manage assets and liabilities strategically. For instance, setting up separate entities—whether a Sole Proprietorship, Partnership, or Private Limited (Pte Ltd)—lets you balance debt obligations across companies.
This ensures your exposure remains healthy while optimising your leverage. At WLP, our advisors guide you through setting up appropriate entities that align with both your financing goals and long-term strategy.
4. TDSR Flexibility
The Total Debt Servicing Ratio (TDSR) limits property loan repayments to 55% of your income, often capping how many properties an individual can afford.
However, companies—particularly those operating as shell or holding companies—can sometimes be exempt from TDSR calculations. This creates an opportunity to hold multiple properties with the same capital base. With the right advice, company ownership can circumvent TDSR restrictions and accelerate portfolio growth.
WLP regularly helps clients structure deals to navigate TDSR more efficiently.
5. Legacy Planning
Transferring properties to a company can be a smart move in legacy planning. By doing so, you consolidate property ownership under an entity that can easily be passed on through shareholding structures.
This avoids complications in distributing real estate individually, especially when the properties are still under mortgage. With a corporate structure, your heirs inherit the company—not the debt.
Let WLP help you evaluate this strategy in line with your long-term estate plans.
6. No Additional Buyer’s Stamp Duty (ABSD)
Residential property buyers in Singapore are subject to ABSD, which can significantly increase upfront costs. In contrast, commercial properties under a company are not subject to ABSD.
Furthermore, if you acquire the company that owns the property, the stamp duty is just 0.2% of Net Asset Value—a fraction of what residential buyers pay. This strategy can result in significant tax savings.
7. Higher Cash-Out Potential
Need liquidity but don’t want to sell your property? A company-owned property may offer a higher cash-out or equity loan amount compared to one held by an individual.
Whether it’s to fund another investment, cover business expenses, or pay for your child’s overseas education, owning through a company gives you greater access to capital when needed.
8. Smarter Purchase Order
If you plan to buy both residential and commercial properties, the sequence matters. Buying a commercial property first under a company preserves your individual TDSR and ABSD quota, giving you more flexibility for subsequent residential purchases.
At WLP, we help clients map out their acquisition roadmap to maximise both leverage and savings.
9. GST for Registered Companies
As of 2024, GST stands at 9% in Singapore. For non-residential properties, GST is payable if the seller is GST-registered.
If you buy as an individual, that 9% is an added cost. But if your company is GST-registered, you may be able to claim back the GST—for example, against rental income from a retail or office unit. This alone can save tens of thousands on a $1–2 million commercial property.
10. Income Tax Advantages
Singapore’s personal income tax is progressive and can go as high as 24%. In contrast, corporate income tax is capped at 17%.
Holding property under a company means rental income and gains are taxed at a flat rate, potentially resulting in substantial tax savings, especially for high-income individuals.
WLP can help you structure your investments to minimise tax exposure while remaining compliant.
Conclusion
While owning property personally is common, purchasing under a company offers powerful advantages—from longer loan tenors and lower taxes to better leverage and strategic asset management.
At WLP, we have helped many clients unlock these benefits with customised strategies that align with their business and financial goals. Whether you’re a seasoned investor or just starting out, reach out to us for a consultation to determine if owning property under a company is the right move for you.