
Japan's unique culture and history have led to the creation of a fascinating phenomenon - free houses in Japan. In fact, there are several websites that offer free houses, but one of the most popular is the Japanese government's website.
The website is a treasure trove of information, with over 100,000 free houses available for rent or purchase. These houses are often located in rural areas, where the population is declining and the government is trying to encourage people to move.
To find a free house on the website, simply select the prefecture and city you're interested in, and browse through the list of available properties. You can also filter your search by type of property, such as a house or apartment.
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Finding Free Houses
Finding free houses in Japan can be a bit tricky, but there are some options to explore.
Some free abandoned homes in Japan are sold at the cost of JPY 0, usually because the owners can't take care of the property or don't want to pay property tax.
You can find a list of free abandoned homes on this website, which is in Japanese.
Akiya banks are another resource for finding abandoned homes, including some that are free.
Directories/Resources/Programs
If you're looking for free houses, there are a few resources to explore. A website in Japanese has a list of free abandoned homes that are up for grabs.
Some akiya are sold at the cost of JPY 0, usually because the owners can't take care of the property anymore or don't want to pay property tax.
Real estate listings promoting sales of abandoned Japanese homes, known as akiya banks, can be a great place to find affordable properties.
There are an estimated 10 million abandoned homes in Japan, many in the countryside, that could be turned into beautiful homes with renovation efforts.
Akiya often sell for as little as a few million yen and are a hassle-free alternative to free-housing schemes.
Are Houses?
Are akiya "free" houses? No, but they can be very cheap, selling as low as ¥50,000 in some cases.
Some akiya are for rent, with extremely low rents sometimes under ¥10,000/month. You'll still need to spend cash on fixes to make the house livable.
Akiya can be a good option for those who want to renovate and live in a unique space, but be aware that you may have to leave the original house intact.
In some rural areas, municipalities offer free houses with strict conditions, such as agreeing to live in the town for a certain number of years and being an active community member.
These free houses often come with rules, like renovating but keeping the original house intact, or even farming if the akiya is zoned with farmland.
Taxes must be paid in addition to the purchase price, so be sure to factor that into your budget.
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Nationwide Search
You can search for akiya bank listings on mainstream Japanese real estate websites, but they may not contain every single property.
Some examples of websites that list akiya bank properties include akiya-athome.jp and homes.co.jp/akiyabank/. However, these websites may not have properties from every region.
The National Tax Agency also auctions some properties, which can be a bit tricky to find. You'll need to search for different departments responsible for auctions in different regions.
You can search for complete listings of prefectural public auctions by searching for "公売 税務" and the prefecture or city name.
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Financing and Costs
Financing an akiya can be a challenge, especially if you're not a local resident. You'll need to be a local resident with Japanese income, a Japanese bank account, and Japanese life insurance to secure a mortgage loan.
Major banks in Japan are reluctant to lend for an akiya, even with the above prerequisites. They'll likely decline your application unless the house is considered valuable or new enough.
Here are the taxes you'll need to pay when buying an akiya, from most expensive to least expensive:
The big variable is the first tax, which is based on the government's estimated value rather than the purchase price. This can make it difficult to budget for the total cost of buying an akiya.
Taxes and Acquisition Costs
Taxes and Acquisition Costs can be a significant portion of the overall cost of buying a house and land in Japan. Registration tax is the most expensive, at 2% of the estimated value.
The estimated value is determined by the government, and it's often higher than the purchase price. Property acquisition tax is the next most expensive, at 4% of the purchase price.
Fixed asset tax is 1.4% of the purchase price, and city planning tax is 0.3% of the purchase price. These taxes can add up quickly, so it's essential to factor them into your budget.
Here's a breakdown of the different taxes you'll need to pay:
Stamp duty is a flat fee that ranges from ¥0 to ¥20,000, depending on the purchase price.
Abandoned House Financing
Financing an akiya can be a challenge. Anyone can purchase property in Japan, regardless of residency status, but securing a mortgage loan is difficult.
If you need a home loan, you must be a local resident with Japanese income, a Japanese bank account, and Japanese life insurance. Banks are hesitant to lend for an akiya, even with those prerequisites.
Major banks will likely decline your application unless the house is valuable or new enough. For example, if the house is worth less than ¥10,000,000, or is over 30 years old, major banks won't touch it.
You may have better luck with a smaller regional bank in these instances. According to Matt Ketchum, founder of Akiyaz, buyers usually pay directly to the seller's bank account a few days before the payment date.
Establishing an escrow account is an option, but it's not common in Japan. You can transfer large amounts of money to Japan with services like OFX, which allows non-residents to send money to Japan easily.
If you're based outside of Japan, consider hiring someone to handle day-to-day maintenance and administration. Property management services can be arranged for when buyers are not in Japan.
Banks and Financing
Financing an akiya in Japan can be a challenge, especially if you're not a local resident with a Japanese bank account and income.
Major banks are reluctant to lend for an akiya, even with the right prerequisites, so you may be best off not mentioning that part when you apply.
The major banks will probably decline your application unless the house is considered valuable or new enough, such as if it's worth more than ¥10,000,000 or is less than 30 years old.
Smaller regional banks may be more willing to lend in these instances, but it's still a bit of a long shot.
If you're based outside of Japan, transferring large amounts of money into the country can be done easily with services like OFX.
You can also use digital mail-forwarding services to ensure you get your mail, and set up credit card auto-billing for your monthly bills.
Why Buy a Free House
Buying a free house in Japan can be a dream come true, but it's essential to understand why people would want to do so.
Free houses in Japan are often referred to as "free houses" because they are sold at a very low price or even for free.
According to the article, some of these houses were originally built for the elderly, but were left vacant when the owners passed away.
Many of these houses are in rural areas where the population is declining, and the government is trying to encourage people to move there.
Free houses can be found in various locations, including rural areas, cities, and even islands.
The prices of these houses vary greatly, but some can be had for as low as ¥100,000 (approximately $900 USD).
However, it's worth noting that the buyer is usually responsible for paying the taxes and maintenance costs of the house.
Frequently Asked Questions
Can foreigners get a free house in Japan?
While anyone can theoretically own a house in Japan, getting a free house is extremely challenging due to complex systems and limited foreigner-friendly assistance. It's not impossible, but navigating the process will likely be very difficult.
Can foreigners buy Akiya?
Yes, foreigners can buy Akiya houses, but it's recommended to work with professionals to navigate the purchase process.
Sources
- https://resources.realestate.co.jp/buy/akiya-banks-in-japan-links-to-vacant-house-databases-by-prefecture/
- https://www.rethinktokyo.com/free-houses-japan-countryside
- https://daveostory.com/writing-fiction-essays/wandering/akiya-abandoned-cheap-free-houses-in-japan-annotations-and-resources/
- https://tokyocheapo.com/living/akiya-vacant-houses-in-the-japanese-countryside-for-a-steal/
- https://tokyollama.com/akiya/
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