HOW TO BUY AN AKIYA HOUSE:

A Foreigner's Guide to Finding Your Dream Home in Japan

 About Post FI
Hey there! I’m Shu, founder of Post FI. I’ve been studying about akiya and
real estate investing in Japan and
I’ve been a real estate investor since what I’ve noticed is that the process of
2018 and I was able to retire from my buying one is quite similar to what I
corporate career in 2022 with my know about investing in real estate
rental income. I started my company remotely. There are countless books
to help others achieve financial and resources on how to buy akiya
freedom through real estate investing. houses in Japanese but resources for
buying akiya in English rarely exist.
I’m a Japanese native and currently
living in Japan. I invest in real estate So this guide is a resource for
in the US. While most of the clients I foreigners to find their dream
help are interested in investing in the property in Japan—and at a very
US, I've received so many requests affordable price. In this guide, I hope
about teaching people how to buy to provide useful, actionable
akiya houses in Japan, ever since I information on how to start your own
posted a few videos on akiya on my search, while saving time and money in
social media. the process.

A disclaimer I have before you jump I would like to also disclose that I am
into this guide is that I do not own not a licensed real estate professional
property in Japan... yet. I won’t get or financial advisor. I simply share
into the details of the reason behind it here what I know about buying a
in this guide but the main reason is property in Japan as well as my own
that my family is quite international research. Before making any major
and like to move and we enjoy having investment, please seek advice from
qualified, real estate, tax and
the flexibility we do by renting where
immigration professionals.
we live.

This doesn’t mean I’m against other

people buying real estate in Japan.
For the right individual or family and
circumstances, buying an akiya home
in Japan is a great option.
Table of
Contents
01
Buying a House in
Japan as a Foreigner

02 Akiya in Japan

03 Finding a House

04 Buying a House

05 Managing your House

Chapter 1: Buying a house
in Japan as a Foreigner
Let’s start by answering the most
commonly asked question: Can
non-Japanese folks buy akiya in
Japan?

The answer is a resounding yes!

Despite what you might have
heard, Japan is actually pretty
relaxed about foreigners owning
property in the country. Whether
you’re a resident or just visiting
on a visa, you’re free to snap up
real estate and land without any
extra hoops to jump through.
And get this: there is no special
tax for non-Japanese buyers,
either. So you’ll have the same
rights as a Japanese investor,
including the ability to pass
down your new properties to
your heirs and paying the same
taxes.

With that said, who is this guide

for?

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Who is this guide for? #1 - Buying real estate in
This guide is dedicated for the Japan will NOT give you
following types of people:
residency here, if that’s
1. You are a resident of Japan and what you’re after.
are ready to settle down.
2. You are a non-resident but frequent Unlike some other countries, Japan
visitor looking to make the most of doesn’t have a specific visa for real
your time in this beautiful country or estate investors. But don’t worry. If
wish to relocate full time. you’re looking to stay longer than a
3. You are not a resident nor a typical tourist visa allows, there are
frequent visitor but know that you still visa options that might work for
want to relocate to Japan full time you. So keep your chin up and don’t
someday. give up on your dreams of living and
4. You may not have fluent Japanese investing in Japan, just yet.
skills, or perhaps you are simply
overwhelmed by the process and
not sure where to start.

Who is this guide not for? #2 - Japanese real estate

prices do NOT appreciate,
Buying an akiya is not for you if you:
in general.
1. Want to build financial wealth
In many countries, purchasing a home
through real estate investing
is often viewed as a smart investment,
2. Are not planning on living there
with the expectation that the value of
yourself for the experience
the property will appreciate over
time.
And before we get into the details of
the how, there are a few things you However, the Japanese real estate
MUST know as a foreigner in Japan. market is quite different in that the
value of homes tends to decrease
over time, particularly in areas
outside of major cities. That being
said, I encourage you to view your
property in Japan as an investment in
your own personal happiness and
fulfillment, rather than solely a
financial one.

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#3 - Non resident? You will likely have to pay all cash.
If you’re non-resident or temporary resident of Japan, it’s important to keep in mind
that obtaining a loan from a Japanese bank can be quite challenging. In fact, loan
products for purchasing property overseas are generally hard to come by as well.
On the other hand, permanent residents have more options available to them,
which we’ll discuss later in this guide.

Unfortunately, if you’re not a permanent resident, it’s highly likely that you’ll need to
pay for your property in cash. While this may seem daunting, don’t let it discourage
you from pursuing your dream of owning a property in Japan. With some careful
planning and budgeting, you can make it happen. And remember, there are many
affordable options available that may fit within your budget.

#4 - Patience is a virtue. It takes a long time to understand

and get used to the language and culture.

To truly understand and appreciate the unique culture and history of Japan
requires patience and a willingness to adapt. Even those who grew up here can
find it challenging to fully grasp the intricacies of the language and customs. These
cultural norms are also reflected in the design of Japanese homes, which may have
features that differ from what you’re used to in the West, such as limited insulation
and energy efficiency or the absence of an oven in most kitchens.

In addition, Japan values a strong sense of community, particularly in regional

towns and villages. Building relationships with neighbors and engaging with the
local community is important and highly valued. While this sense of community may
be diminishing in larger cities, it remains a core aspect of life in many parts of
Japan. So approach your transition to Japan with patience, and open mind, and a
willingness to learn and adapt to a new way of life.

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 Chapter 2:
Akiya in Japan

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 Ok, so what kinds of properties are
likely to come cheap in Japan?

In this guide, I focus on the following

types of properties:

Used and older properties

Single-family homes
Vacant
Located outside of big cities

Next, I’m going to tell you what to

expect in terms of older Japanese
houses.

The truth about

depreciation
I want to briefly address the likelihood
of depreciation and the fact that the
'official' lifespan of housing stock in
Japan is just 35 years.

Going rural
You may feel apprehensive about
purchasing a property in a rural area
due to concerns about depopulation
and lack of services. But, there is a
positive trend worth noting - the
movement of people from urban areas
to the countryside in Japan. While it is
still uncertain whether rural migration
will continue to increase, some smaller
towns have actually seen a rise in
population. So don’t let depopulation
discourage you from considering the
unique opportunities and benefits that
come with owning a property in a rural
Japanese town or village.

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Akiya houses and how to What’s considered too
find them cheap?
The number of vacant homes, or akiya, While some popular articles may
in Japan has reached a staggering 15% suggest that buying a home in Japan
of all properties, estimated to be 10 only requires about $500 and a
million by the end of 2023. This is a willingness to live in a ‘ghost village,’
consequence of urbanization and it’s important to be cautious.
depopulation, with the over-65s making
up one third of Japan’s shrinking The truth is, many extremely cheap
population. houses in Japan are often abandoned
akiya for which the owner cannot be
However, it’s important to keep in mind traced and are in poor condition.
that akiya often requires extensive
renovations, and budgeting While it is possible to find majestic
accordingly is recommended. heritage properties for under
Fortunately, finding an akiya has $20,000, unless you are a skilled
become easier with the establishment DIY-er willing to undertake extensive
of akiya banks by NPOs and local renovation work, I do not recommend
authorities, which can match sellers with looking for properties below a
buyers. It’s important to note that only certain price range.
someone with a real estate license can
oversee a contract or negotiations, so
working with a licensed agent is
necessary for completing a purchase.
Additionally, abandoned properties
may be auctioned off periodically by
the local government through kobai.

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Chapter 3:
Finding Akiya
Ready to start your journey? Let’s look at a typical real estate listing online,
how to arrange an intermediary, and some key questions to ask the realtor.

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Real Estate terms in Japanese
Naturally, some of the finest property Two indicators relating to the
listings can be found on Japanese real interior floor plan and size are the
estate websites such as AtHome or number of rooms (including the
Nifty. You can translate these sites in acronym for living, dining, and
web browsers like Chrome using built-in kitchen) and the size of rooms in
translation functions. 帖
tatami mats ( ; joh). Whether
rooms are 和室 洋室
(washitsu) or
Here are some relevant Japanese (yohshitsu), they are measured in
terms that you may encounter: tatami mats rather than square
meters, with one tatami being
不動産 (fudohsan) means real estate about 91x182cm. Note that in
(不動産屋 or fudohsanya refers to a Kyoto and parts of the Kansai
realtor), and 物件 (bukken) means region, the slightly larger Kyoto-
property. style京間 (Kyoma) tatami
(95.5x191cm) may be used
賃貸 (chintai) or 借りる (kariru) are instead.
rental-related terms, so you can skip
them, whereas 買う (kau) or 購入する Another common unit of
(kounyu suru) mean "to buy." measurement is the 坪 (tsubo),
which is used instead of square
For types of property, you might meters to denote the total floor or
マンション
come across (manshon) land area. One tsubo is roughly
or アパート (apaato) for 3.3m2, equivalent to two tatami
土地
apartments, (tochi) for land, mats side by side. This site can
and 一戸建て 一軒家
(ikkodate) or convert both standard tatami and
(ikkenya) for houses. tsubo to square meters.

リフォーム (rifohmu) and リノベーシ

ョン (rinobehshon) refer to property
renovations, and 済 (sumi) at the
end indicates that they have been
completed recently, whereas 未改装
(mikaisou) means that none have
been done yet, with the implication
that the property requires
renovation.

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Some terms that frequently appear in Hiring an intermediary can save you
Japanese floor plans include: time and trouble, and if they are
particularly skilled, they may be able
階 一階 階 二階
1 / ,2 / , etc., which refer to negotiate a better price for you.
to the first floor (ground level),
second floor, and so on.

玄関 (genkan), the front entrance What questions should

hall where you usually take off your you ask an agent?
shoes before entering the house,
which is on a raised level regardless It is essential to be well-prepared for
of whether it is an apartment or a viewings or meetings with a realtor,
house. and this is where an intermediary can
be of help. Keep in mind that a
押し入れ (oshiire) or (shuuno) for realtor may not have all the
closet or storage space (in older or necessary information on a particular
traditional houses it is more likely to property, or they may choose to
be the latter, with shelving at the withhold information unless you
most but rarely a rack for hanging specifically ask for it. Therefore,
clothes). persistence is key!

バルコニー (barukonii) for In addition to the important items we

balcony/terrace. have already covered, there are
some key questions to ask the realtor
庭 (niwa) or (tsuboniwa) for a when visiting an older property:
courtyard garden, which is common
in older and larger homes. When was the building
registration certificate issued?
Hiring an intermediary Is the property currently vacant or
abandoned? If so, for how long
It may seem like a good idea to work
and why? Are there any known
with a Japanese real estate agent
defects?
directly, but I would advise against it
Has the property been renovated
unless you are fluent in Japanese.
or rebuilt recently?
English proficiency in Japan is one of
the lowest in the OECD countries, and it
Make sure to bring enough memory
is not commonly used as a second
on your device to take ample photos
language. Therefore, realtors may not
and take notes during the visit.
be confident enough in their own
English skills to offer assistance and
provide you with the necessary advice.

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What about an inspection?
When considering purchasing an older property, I strongly advise investing in a
professional house inspection conducted by an independent inspector. When I
say older, I mean really old and on properties that have been available for a
while.

Although the realtor may have arranged one on behalf of the seller, it's
recommended to hire someone with no conflict of interest. Basic inspections
usually cost between 50,000 JPY to 70,000 JPY, while more detailed ones may
cost over 100,000 JPY. This may seem like a hassle to the seller, so an intermediary
can be especially helpful in navigating this process. The Japanese Society of
Home Inspectors website has a comprehensive country-wide database to help you
find a qualified inspector.

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 Chapter 4:
Buying a House
So now that you’ve looked at a few different properties and have found ‘the one’
you are ready to buy the house of your dreams. What’s next?

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Naturally, payment options may be on your mind, but there are other costs involved
in a transaction.

Due diligence: Trust AND verify

It's important to pay attention to whether there is a clause defining the period for
recourse in case of hidden defects that were not apparent at the time of purchase,
known as 瑕疵担保責任 (kashi tanpo sekinin) in Japanese. If there is no such clause,
as of April 2020, realtors are required by law to provide a two-year warranty from
the date of exchange. However, private sellers may include a clause to exempt
themselves from any obligation, which is only valid under the Civil Act if it can be
proven that they were aware of any defects. In such cases, the buyer has one year
from the point at which a defect is discovered to take action.

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Types of taxes and costs Priority is often given to applicants
who have a Japanese spouse or those
When buying any existing house and looking to purchase investment
land in Japan, there are five different properties. Rural properties usually
taxes to be paid. From most expensive don't meet the loan criteria. The
to least expensive, they are: shortlist of banks that are open to
lending to non-residents frequently
Registration tax ( 登録免許税): 2% of changes, and unless this is your sole
estimated value option, I would strongly advise
exploring other avenues first.
Property acquisition tax (不動産取得
税 ): 3% of purchase price Payment options for non-
residents
Fixed asset tax (固定資産税): 1.4% of
purchase price There are two main options for non-
residents to purchase a property:
City planning tax ( 都市計画税): 0.3%
of purchase price Save and pay all cash
Stamp duty ( 印紙税 ): 0 to 20,000 This is the most straightforward
yen or about $150 depending on option, and the one I personally chose
purchase price when purchasing a house in Japan.
While paying the full amount upfront
Also, budget about another 100,000 may seem like a large commitment,
yen or $740 for lawyer fees. The cost of there are several benefits to consider.
the judicial scrivener who will draw up As we've already discussed, property
the contract and carry out the changes prices in Japan are generally lower
in registration is usually paid by the than in other developed countries,
buyer. and with the current depreciation of
the yen against the US dollar, it's a
Getting a mortgage from a great time to make a cash purchase.
Additionally, paying in cash can give
Japanese bank as a non- you significant bargaining power
resident when negotiating with realtors,
potentially allowing you to secure a
Although it is technically feasible to discount of up to 15% or 20% off the
apply for a loan as a non-resident at list price.
some banks, the success rate is low.

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Apply for a loan in your Have yearly income of at least
¥3-5 million ($23,000-$38,000)
home country
The property also must be built in
Getting a mortgage for non-investment accordance with the Building
property in a foreign country can be Standard Act, and it should come
challenging since only a few banks with land ownership (i.e. it should
offer such services. However, if you own be a freehold property).
a property in your home country, you
may be able to use it as secured Some Japanese banks may request
collateral to secure a loan. It's that you possess enough proficiency
advisable to consult with your bank for in the Japanese language to
further guidance on this matter. comprehend the loan agreement
terms and be capable of providing
Apply for a loan as a your name and address in Japanese
resident of Japan characters. Otherwise, your
alternatives may be more restricted.
If you are a non-resident looking to
apply for a mortgage in Japan, your It should also be noted that the
options may be limited. However, if specific requirements outlined above
you have permanent residency status may differ marginally between banks,
or a spouse who is a Japanese citizen with some offering more
or permanent resident, you may be advantageous conditions than others.
eligible to apply for a loan. Keep in Therefore, if you are interested in this
mind that if your spouse is the joint option, I recommend conducting your
guarantor for the housing contract, own investigation and contacting the
they will be responsible for the banks directly.
repayment of the loan in case of
default.

Generally speaking, both foreigners

and Japanese nationals must:

Be 20-65 years old, and be able

to pay the entire loan off before
turning 80

Have a group credit life

insurance. Be a full time
employment/contract worker for
at least 2-3 years

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 Documentation for
non-residents
To buy a property in Japan as a non-
resident, you will need to provide an
affidavit, a document that includes
your identification details and
primary home address in your home
country, signed by a notary public
(NP).

It's best to obtain this document

before coming to Japan, but some
embassies and consulates in Japan
may provide this service as well.

The affidavit is typically valid for

three months from the date it is
issued.

Additionally, non-residents are

required to submit a form under the
"Obligation of Notification due to the
Foreign Exchange and Foreign Trade
Control Act" within 20 days of the
purchase.

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Chapter 5:
Managing your House

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Congratulations, you've made it through the challenging part of buying a home!
Now it's time to sit back and enjoy the fruits of your labor.

However, there are some other important aspects of home ownership to consider,
such as annual property taxes, insurance, and utility bills.

You'll also need to think about who can keep an eye on your property when you're
not in Japan. In this section, I'll cover these topics in more detail.

Just like when purchasing any home, it's crucial to arrange for an inspection before
closing the deal. Doing so could potentially save you from unforeseen maintenance
costs or other unpleasant surprises down the line.

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Annual property taxes Insurance
Yearly property taxes are 1.4% of the The most common type of home
government assessed value of the insurance in Japan is known as "fire
property, plus 0.3% for city planning insurance" or "kasai hoken," and while
tax. The tax bill arrives in the mail every it is optional, I highly recommend it.
year around mid-April and is split into 4 The policy usually lasts for 2 years and
payments. You can choose to pay it all costs between 20,000 to 50,000 JPY.
at once. Despite its name, it offers coverage
that is much wider than just damage
caused by fire, and is similar to home
Utilities insurance policies in other countries.

For a single person, it is advisable to set However, it is important to carefully

aside around 15,000 JPY per month to read the terms and conditions of the
cover utility bills. This amount includes policy before purchasing it. If you
the cost of electricity, which usually plan to rent out your property, you
accounts for around half of the total can find a policy that includes tenant
cost, as well as gas and water liability coverage under the fire
expenses. However, the use of solar insurance umbrella. It is worth noting
panels is becoming increasingly that earthquake or natural disaster
popular in Japan, with prices starting at coverage is typically not included in
around 300,000 JPY. By installing solar this policy, even if such an event
panels, you can significantly reduce causes a fire that damages your
your monthly utility costs. property. For that reason, I strongly
recommend considering a separate
Electricity and gas bills are typically earthquake insurance policy and
billed on a monthly basis, while water carefully analyzing the costs and
bills are issued every two months. If you benefits beforehand, as prices can
have a Japanese bank account, you vary widely.
can request a direct debit form ( 口座振
替 , kouza furikae) from your utility
company to automate your payments.
Alternatively, if you do not have a bank
account, you can settle your bills at the
nearest konbini convenience store using
the payment slip provided by the utility
company.

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Property management for
non-residents
If you plan to be away from your
property for a prolonged period, it's
important to make arrangements for
someone to take care of it in your
absence. If you don't have a trustworthy
friend or neighbor to assist you with
tasks like watering plants and checking
on the property, you may want to
consider hiring a property manager.

The cost of a property manager can

range from 5,000 to 20,000 JPY per
month depending on the size of your
property and the amount of ongoing
work required. If you need assistance
arranging a property manager, a
translator or English-speaking
intermediary may be able to help you.

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 Final Notes
For the most part, I’ve been recommending people NOT to buy akiya or real estate
in Japan because houses in Japan do not appreciate in value. In other words,
investing in Japanese real estate strictly from the financial perspective isn’t the
smartest move in my opinion.

BUT owning a house in Japan can absolutely be the smartest move for the right
person and circumstances.

As a Japanese national living in Japan, I wholeheartedly love my home country. I

love the food, the climate, the culture and many other things that Japan has to
offer. I want Japan to stay beautiful as it is for many years to come.

With the country’s birth rate and population decreasing, there will be more and
more empty houses in Japan. Towns and villages are disappearing while houses
remain abandoned. My wish is that by helping you purchase an akiya house in
Japan, you will deepen your connection with the country and help revitalize the
beautiful country.

Owning a house in Japan may not make sense on the spreadsheet but the cost of
home ownership is relatively low, compared to many other countries. If you dream
of owning property in Japan, it is a realistic and attainable goal, and there are
many non-financial benefits.

Shu Matsuo Post

[email protected]

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