10 things you should know before buying abandoned homes in Japan

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.

1. Akiya Aren’t Just in Rural Japan
2. Structural Renovations Can Be Very Costly
3. It’s Probably Not Empty
4. Anyone Can Buy; Residency Isn’t Guaranteed
5. There Are Surprise Taxes and Fees
6. Akiya Listings Can Be Hard to Find
7. Land May Not Be Included
8. Natural Disasters Put Older Akiya at Risk
9. It’s Important to Know What’s Around Your Home
10. Agents May Be Reluctant to Handle Akiya

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 It’s important to inspect for termite damage, insulation issues, and outdated plumbing or electrical systems.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.

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