It is relatively cheap to buy a house or apartment in Malaysia, and some expatriates have made good returns on their property investments over time. A wide range of properties is available, including large detached houses (known as bungalows), semi-detached and terraced houses, apartments and condominiums.

Properties for sale can be found via the real estate agents which are numerous in urban areas and advertise in the local and national press. It may also be possible to buy land on which to build your own property. However, it should be noted that some areas of land can only be bought and sold by Bumiputera (Malays and other indigenous groups).

Foreigners are eligible to buy 2 houses at a cost of not less than RM150,000 each. For this purpose, they are also entitled to apply for a loan from a local bank for 60% of the purchase price.

The standard procedure for purchasing a property is:

1) Sign letter of offer and pay 3% of purchase price as earnest deposit
2) After 14 days, sign sale and purchase agreement; pay 7% of purchase price
3) Pay balance of purchase price within three months

Legal fees, stamp duty and agency fees (if used) are also payable.

Added March 2007 by Andy:
Your comments about buying property are the rules for people who have visas under Malaysia My Second Home (MM2H), not foreigners who wish to buy property here. In addition, some states have set higher limits - including Penang Island, a popular place where expats want to buy. The 60% limit on bank loans has been removed so there is no longer a maximum amount for people here under the Malaysia My Second Home programme. My website offers current information see www.MM2H.com.