Japan’s countryside is scattered with over eight million abandoned homes, or akiya, often marketed as a dream for those looking for affordable housing. Yet, behind their charming facade, these traditional homes may harbor challenges that could sour your dream. Before you dive into a purchase, here are ten things you might not know about buying abandoned homes in Japan.
Akiya Aren’t Just in Rural Japan
When most people think of akiya, they tend to picture quiet, rural villages tucked away in picturesque settings of mountains and rice fields. While it’s true that many akiya are located in the countryside, there are also plenty of opportunities in urban and suburban areas, including major cities like Tokyo, Osaka and other large metropolitan hubs. These properties are increasingly becoming an option for those seeking affordable housing within city limits.
In fact, if you’re looking for a more rural lifestyle without feeling isolated, you don’t have to leave the city entirely. There are akiya in smaller towns and residential neighborhoods that offer a peaceful environment but still provide easy access to transportation, essential services, and a thriving community. Living in these areas means you can enjoy the quieter atmosphere of suburban life while still staying connected to the conveniences of urban living.
Structural Renovations Can Be Very Costly
Many akiya are old, with some dating back centuries, and their wooden structures often show signs of neglect. After World War II, Japan’s housing boom led to the construction of inexpensive homes, many built between the 1950s and 1980s. These postwar akiya may have uneven floors, cracked walls, and sagging ceilings, requiring more than just cosmetic repairs. Over time, wood can warp, rot, and attract termites or mold.
Renovating an akiya depends on its age and condition. Newer homes may only need minor updates, while older ones might require major work. It’s important to inspect for termite damage, insulation issues, and outdated plumbing or electrical systems. You might encounter the dreaded washiki squat-style toilet.
In general, akiya restoration prices are about:
- Wallpaper Replacement: ¥1,000/sqm
- Flooring Replacement: ¥10,000 to ¥70,000 per tatami mat
- Toilet Replacement: ¥200,000 to ¥500,000
- Replacing a Unit Bath: ¥500,000 to ¥1,500,000
- Renovating a Conventional Bathroom to a Unit Bath: ¥1,500,000
- Kitchen Renovation: ¥500,000 to ¥1,000,000
- Exterior Wall Repair: ¥500,000 to ¥3,500,000
- Roof Repair: ¥500,000 to ¥3,500,000
- Seismic Retrofitting: ¥250,000 to ¥1,500,000
- Insulation: ¥4,000 to ¥40,000/sqm
- Window Installation (Double-Glazed Glass): ¥80,000 to ¥150,000
- Termite Extermination: ¥1,800 to ¥3,500/sqm
- Rain/Water Damage Repair: ¥10,000 to ¥450,000 per spot
- Restoring a Garden: ¥100,000 – ¥500,000
- Repairing or Installing Fences: ¥50,000 – ¥200,000
It’s Probably Not Empty
Houses may be sold “as is,” meaning anything from old furniture to personal belongings from the previous family may still be left inside. Clearing out these properties can be surprisingly costly, especially with local disposal fees for large items. Depending on the amount of waste, removal costs can add another ¥100,000 or more to your budget.
While it may seem like a small matter, this unexpected chore and cleanup expense can be a headache, especially for those unfamiliar with Japan’s strict waste disposal regulations.
Anyone Can Buy; Residency Isn’t Guaranteed
Foreigners are allowed to purchase property in Japan, including akiya. However, owning property does not grant residency. Those wishing to live in Japan long-term must meet the necessary visa requirements.
It’s possible to use an akiya as a seasonal home or investment property, but local governments may prefer that newcomers use it as their primary residence, particularly in rural areas. The goal is to encourage new residents to help revitalize communities by participating in local activities and supporting the local economy.
There Are Surprise Taxes and Fees
If only the purchase price were the final cost, it would be a dream. Unfortunately, recurring taxes often surprise new homeowners, such as:
- Brokerage Fee: A fee for the real estate agent, typically 3% to 5% of the property price.
- Registration & License Tax: A tax for transferring ownership, usually about 0.4% of the property price.
- City Planning Tax: A local tax based on land value, usually between 0.3% and 0.5% of the property’s land value, assessed annually.
- Stamp Duty: A tax on the property transaction, which varies depending on the property price.
- Property Tax: An annual tax based on the property’s assessed value, usually about 1.4% of the property’s value, which can be affected by the property’s condition.
Luckily, some municipalities offer financial support to encourage the revitalization of vacant homes. If your newly renovated home meets specific requirements, such as being eco-friendly and earthquake-proof, you may be eligible to receive tax deductions.
If you are a permanent resident with a stable income, you may be eligible for a loan with low interest rates. You might also be granted a special tax reduction. The housing loan deduction (住宅ローン控除), for example, refunds taxes paid based on your loan amount. However, failure to keep the home in good condition may result in the cancellation of reductions or subsidies, along with a big increase in property taxes.
Akiya Listings Can Be Hard to Find
Unlike typical real estate listings, many akiya are not listed online and are harder to find. Sometimes, they are listed at local government offices, requiring in-person inquiries and, often, a working knowledge of Japanese. Some properties were never even intended for sale, and owners may be unaware of the home’s status. For these reasons, finding an akiya requires persistence and the help of real estate agents familiar with the challenges.
If you’re ready to begin your hunt for the perfect akiya, Real Estate Japan might be a good place to start:
Land May Not Be Included
When buying an akiya, make sure the land is included in the purchase. Some previous owners lease the land, meaning you might only be buying the house, not the property beneath it. Confirm land ownership to avoid future disputes.
In many cases, the land is worth more than the house itself. If you plan to demolish and rebuild instead of renovating, check local regulations to ensure your plans are feasible.
Natural Disasters Put Older Akiya at Risk
Japan faces frequent natural disasters like earthquakes, typhoons, and landslides. While newer homes are built to withstand these events, older akiya may not meet modern safety standards, especially those set after the 1995 Kobe earthquake.
Homes built before 1981 may not meet current earthquake codes, so it’s crucial to have professionals inspect the property for structural issues, termite damage, insulation, and earthquake resistance. With experts predicting a 70% chance of a megaquake in the next 30 years, consider alternatives if you’re concerned about the risks.
It’s Important to Know What’s Around Your Home
Living in a remote village presents unique challenges. Public transportation may be limited or even unavailable, so you’ll likely need a car or bicycle to get to the nearest shops, healthcare facilities, or work. Before moving, check the proximity of essential services like stores and bus stops.
It’s also important to understand the local community culture. In rural areas, participation in town events like clean-ups, festivals, and neighborhood associations is often expected. A declining population can lead to feelings of isolation—what feels like peaceful solitude during a short visit may become loneliness over time.
Agents May Be Reluctant to Handle Akiya
Buying an akiya can be a complex process, so finding a reliable agent is crucial, especially for help with language barriers and legalities. However, many agents are reluctant to deal with akiya due to lower commissions on these properties. It’s best to work with agencies specializing in akiya and rural homes, as they offer expert guidance throughout the purchasing process.
Turning an old, abandoned house into a cozy home can be a rewarding project, but be prepared for hidden costs and challenges along the way.
Have you ever bought an akiya in Japan? What was it like? Let us know in the comments!
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The special tax exemption was only available to people building new homes. My 45 year old home did not qulaify. I have PR and a government contractor job. I wanted a 8 mil loan but still could not get a low interest house loan without a guarantor so i got a high interest personal loan to buy the property. There was a dispute about ownership and the agent had to travel out of the prefecture to sort out so we had to wait for a quiet period when the agent was free to do that. it took almost a year to buy, it would be cheaper to knock down the property and rebuild than to insulate it, fix the crumbling facade and rusting emergency exit stairs and holes in the roof, getting rid of dead trees in the garden. It has large windows with an unobstructed view of a national heritage site and is big enough for both home and business but it is so costly to heat and cool and needs constant maintenance. working with kids i just can’t find the time to scrape all the rush off the stairs and repaint, or fix the garage where a whole wall has rotted away and fallen into the garden, not to mention the dead cherry tree. It was a nice dream while the weather was milder but now I worry about the impact of sleeping in such cold rooms on my health.
I don’t ever waste my time here lol!
Another very important concern regarding ‘land’ is whether is is designated as agricultural or residential. Changing it from the former to anyting else is often very, difficult.