August 2007 marked the 50th anniversary of Malaysian independence from British colonial rule, and the country has used the occasion to market the whole year as Visit Malaysia 2007, designed to encourage tourism and its international currency to the country.

Malaysia excels in branding and marketing itself. For example, Malaysia introduced the Silver Hair Programme, designed to attract retirees to move to Malaysia and spend their pension or savings in a tropical climate with a very competitive standard of living. This has been rebranded the Malaysia, My Second Home programme, in an effort to separate itself from the limiting boundaries of retirement.

And across the country, the Ninth Malaysia Plan sets out a blueprint for the direction of the economy between 2006 and 2010.

Malaysia has proved a solid platform from which to tempt overseas investment, and has had stable growth after recovering from the Asian financial crisis of 1997. Despite the fallout from the US sub-prime market, Malaysia is on track for full-year growth of around six per cent.

The Malaysian property market has gone from strength to strength on the back of encouraging policies for international investment, not the least the scrapping in April this year of capital gains tax on residential property, formerly set at 30 per cent.

As Malaysia is a federation of states, each of which is responsible for its own land matters, PeregrineLaw will advise you whether, as a foreign non-resident, you are able to purchase freehold or leasehold property in terms of the relevant rules and regulations.

Basically, there are few restrictions placed on foreign non-residents. You will need approval from the state authority (since January 2007, approval from the Foreign Investment Committee to buy residential property above RM 250,000 (£36,000) is no longer required). Mostly international buyers have the same rights as locals and there are no restrictions on either the use of the property or the number of units purchased.

Upon reservation, a ten per cent non-refundable deposit is normally paid, after which the buyer has three months to complete the sale and make full payment (this is often extended as the mortgage process can take quite a while in Malaysia).  Mortgages require a lot more documentation than other foreign countries, including UK credit reports for buyers. PeregrineLaw has a good partnership arrangement with excellent mortgage brokers who will gladly assist you. We can even facilitate direct contact with one of the largest banks in Malaysia should you so require.

Purchase costs can add between around two and four per cent of the price of the property. These include the legal fees on signing the sales and purchase agreement, worked out on a sliding scale starting with one per cent on the first RM150,000 (21,600), and 0.7 per cent on the next RM850,000(£122,500), with smaller increments as the price increases. There is also a fee for application of state consent for the buying of the property of RM200 (£29) and stamp duty is levied at one per cent on the first RM100,000 (£14,400), two per cent on the next RM400,000 (£57,600) and three per cent on the remainder.

The Malaysia My Second Home programme is designed to attract foreigners to come and live in the country with their families, initially for up to ten years on a social visit pass, although this is renewable. The programme does require certain criteria to be fulfilled, including opening a fixed deposit account with either RM300,000 (£43,200) for those aged under 50 years, or RM 150,000 (£21,600) for those over 50, some of which can only be withdrawn after a year. Participants can buy a home over RM 250,000 (£36,000) in all states in Malaysia except Sarawak, where the minimum spend is RM350,000 (£50,400).