Please help! Where do we stay for 3 months really (really!) cheap in Thailand or Malaysia?

Hey, me and my boyfriend with our two young children are going to Thailand or MalaysiaMay-August for 3 months. Our budget is very limited! Where can we find a really cheap house to rent near a beach (not Bangkok or northen parts of Thailand or Phuket)? Preferrably we would like to rent on a monthly basis which might keep costs down? Is Malaysia cheap and how much can you get a way with in living expenses per moth incl. a house? (nothing fancy) Where would be the best place to go in Malaysia? What we want is pretty much somewhere paradiselike on a beach (pref. living ON the beach) where there are still some stuff to do...and good for the kids too.
Would really appriciate any kind of advice and information! :-)

Paradise - on a budget? :)

Well, yes you can have that in either Thailand or Malaysia (but certain caveats apply).

However, I will stick my neck out and say I think Malaysia represents better value than Thailand right now. On my last trip to Asia I went to Malaysia and was very pleasantly surprised. I actually found the accommodation to be better quality, and cheaper in Malaysia compared to Thailand. There have been some pretty hefty prices rises in Thailand recently - not quite sure what's going on but numbers are down and prices just keep going up!

If you are heading to Malaysia then I would recommend the islands of Perhentian - look into it - you could get a good deal at somewhere like Arwana Perhentian Eco Resort - the beaches are beautiful and you get to swim with Sea Turtles. The kids will love the pool/sea too.

The other plus with Malaysia is most people speak English to a high standard - so you get less hassle getting exactly what you want and it's easier to negotiate on price too.

In Thailand you could head out to one of the lesser known islands such as Koh Lanta. But what's wrong with Phuket? If you avoid the main town and head out to the smaller resorts you will be much more likely to pick up a bargain as there's more competition for tourists at that time of year, and it's pretty nice - Kata Beach is one of my favourite beaches.

For either country I would budget around 1000-1500 GBP per month for in-country expenses.

Having said all that - you are going out of season (the weather might not be exactly what you are expecting) - so there will be bargains to be had in either Thailand or Malaysia.

Finally, ALWAYS negotiate hard in either country.