With the exception of Israelis and Serbians, expatriates can invest in residential property for their own use under the well-publicised Malaysia My Second Home programme (MM2H). MM2H is central to the residential property regime for foreigners. The scheme actually allows for ownership of up to two properties and includes means to tests applicants. Procedures now require all applicants to register through approved agents. The scheme does not permit participants to work in Malaysia but it is not clear how this condition applies to people working over the internet in fields such as consultancy or investment.
Outside the MM2H programme, it is possible for expatriate workers to obtain permission to purchase real estate and with outright possession (compared with Thailand) comes the possibility of financing a purchase with a loan from a local bank.
Deposits on residential property purchases are made in two stages, firstly a 3% sum with the letter of offer followed by a further 7% of the purchase price with the full sale agreement (normally two weeks later) .
Construction periods for off-plan investments can be quite long (2 to 3 years). Investors should check the status of the land the development will take place on as Malay reserves lands are not suitable for investors from overseas. Instalments in staged payment agreements should only be paid when the work has been certified by a competent architect or engineer.
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