Pros and cons of acquiring an incredibly affordable akiya house in Japan

Tokyo Llama is a popular YouTube channel of an Australian who bought and DIY-renovated an abandoned traditional house in Japan. His videos walk us through a painstaking process of remaking the old house from scratch, drawing over 200k viewers worldwide (a friend of mine in New York recommended it).

Akiya houses: What’s available on the market?

Akiya, or abandoned/empty houses, are abundant in Japan. Its aging population and lower birth rate have led to an oversupply of existing homes, especially in rural areas. It is estimated that as much as 30% of residential buildings across the country will become akiya by 2030.

These akiya include traditional folk houses (minka or kominka) or farmhouses at significantly discounted prices. This has attracted foreign buyers, too. The Tokyo Llama property, a sizable 30-year-old 1400 m2 farmhouse in Ibaraki (only an hour away from Tokyo), was only USD 23,000.

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Another 86-year-old akiya in the prestigious Setagaya Ward in Tokyo was purchased by a Swede for $69,000. He discovered this fixer-upper through Akiya & Inaka, a database and real estate services specialized in vacant housing for expats interested in rural living in Japan.

Key considerations for purchasing an akiya

There are some caveats to know before embarking on an akiya hunt.

Firstly, it is most likely to require renovation and thorough cleaning, which can be expensive. Japanese old houses need insulation and structural reinforcement to meet the latest earthquake resilience standards. In addition, akiya houses are often full of previous owners’ belongings. Secondly, there are some real estate tax obligations, registration fees and other cost implications. Lastly, the DIY industry in Japan is not as extensive as in other countries, such as the U.S.

Nevertheless, for those who are up for an adventure, an akiya project will be a rewarding circular economy experience. It offers the opportunity to breathe new life into a home in the beautiful countryside of Japan. In my next installment, we’ll delve into some examples in greater detail.