Malaysia has caught the eye of many investors and expatriates with its low cost of living, beautiful weather, lack of natural disasters and federal incentives designed to bring more foreigners to the country. As more foreigners join the country’s population, it could prove beneficial for investors. It is relatively cheap to buy a house or apartment in Malaysia, and some have made good returns on their property investments.

A wide range of properties are 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. 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).

Apartment and house rentals in Malaysia range, on average, between approximately $150 and $250 U.S. per month, according to RealEstateAgent.com.my. While housing costs are probably higher than the average in metropolitan areas of Malaysia, they are still likely to be lower than the estimated rent of $440 to $745 U.S. per month in neighboring Singapore, according to RealEstateAgent.com.my. These low prices encourage expats, who tend to pay higher rents, to move in.

In recent years, Malaysia has made a concerted effort to attract new overseas residents. When more and more upscale developments were built, the government realized there just wasn’t enough of a demand domestically. The Malaysia My Second Home program, which is designed to help foreigners relocate to the country, has approved approximately 10,000 applications since the program began in 2002, according to its website. Applicants who are approved receive a renewable 10-year visa, the right to one tax-free car and no taxation on their offshore income. Another ways of the government responded was by abolishing the Real Property Gains Tax (RGPT) as of April 1 2007.

It is also now much simpler than it was in the past for foreigners to get loans in Malaysia, a feat which was once “nearly impossible.” The loan-to-value ratio is still much lower for foreigners than it is for native Malaysians; foreigners can typically receive up to 70 to 75 percent of the value, while Malaysians receive loans covering up to 95 percent of the value. Some banks may offer loans with as low as 60 percent loan-to-value to foreigners who do not have satisfactory financial documentation.