Opportunities seem abundant. On social media we can see people buying cheap abandoned homes across Japan. However what is the reality? What is the process? Is it easy to buy an abandoned home in Japan? We will take a look at several of these questions and more.
As with many countries, young people move to big cities for many reasons, leaving behind older relatives. Japan too faces this problem, and these elderly relatives pass away leaving their property to be passed down to relatives who cannot manage the property nor do they wish to keep the property. So, what is the reality of buying an Akiya? It depends on you and your financial ability. These properties can be expensive to renovate and the running cost for maintaining it may be more than expected.
How to Buy an Akiya?
- Find an Akiya: Many local governments in Japan operate “Akiya Banks” (空き家バンク), online platforms listing empty homes for sale. Each area may have its own Akiya Bank, providing detailed information on property conditions, locations, and prices.
- Work with a Realtor: For international buyers, collaborating with an English-speaking realtor experienced with Akiya properties can ease the process. A local realtor can guide you through the legal and bureaucratic aspects of Japanese real estate.
- Renovations and Maintenance: Many akiya require extensive repairs, especially if they have been vacant for years. Local governments often provide subsidies to encourage buyers to renovate and restore these homes. Factoring in these costs is essential. Additionally, after purchasing an akiya, you will need someone to visit and maintain the property during your absence to prevent deterioration.
- Legal Considerations: Foreigners can buy property in Japan without restrictions, but buying an Akiya involves specific legal processes, including registration, tax payments, and zoning compliance.
Pros of Buying an Akiya
- Affordability: Akiya are often sold at incredibly low prices compared to urban real estate.
- Cultural Experience: Owning an Akiya lets you experience rural Japanese culture firsthand.
- Potential Investment: With the right renovations, Akiya can be transformed into vacation rentals, guesthouses, or retirement homes. However, some Akiya cannot be used as investment properties.
Challenges to Consider
- Renovation Costs: Though the initial price may be low, repair and renovation expenses can add up. Older homes may require updates to wiring, plumbing, and insulation.
- Limited Amenities: Akiya are typically in rural areas with fewer amenities than cities. Shopping, healthcare, and entertainment may require a longer commute.
- Depopulation: As younger generations move to cities, rural populations decline. This trend can impact the value of your investment. Property management can also be expensive, with companies based in larger cities often servicing these areas.
Conclusion: Is an Akiya Right for You?
Buying an Akiya isn’t a real estate investment—it’s a lifestyle choice. In some cases, a golden property can be found, one needing little to no renovations. In most cases, it is for those drawn to the idea of restoring a traditional Japanese home. However, consider the costs and challenges carefully. Whether you’re looking for a vacation home, retirement residence, or investment, an Akiya offers a unique chance to own a part of Japan’s countryside. However, do not just look for Akiya’s as there are plenty of other properties, that are better and for a good price available in the market.
