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 a real estate investor since
2018 and I was able to retire from my
corporate career in 2022 with my
rental income. I started my company
to help others achieve financial
freedom through real estate investing.
I’m a Japanese native and currently
living in Japan. I invest in real estate
in the US. While most of the clients I
help are interested in investing in the
US, I've received so many requests
about teaching people how to buy
akiya houses in Japan, ever since I
posted a few videos on akiya on my
social media.
A disclaimer I have before you jump
into this guide is that I do not own
property in Japan... yet. I won’t get
into the details of the reason behind it
in this guide but the main reason is
that my family is quite international
and like to move and we enjoy having
the flexibility we do by renting where
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.
I’ve been studying about akiya and
real estate investing in Japan and
what I’ve noticed is that the process of
buying one is quite similar to what I
know about investing in real estate
remotely. There are countless books
and resources on how to buy akiya
houses in Japanese but resources for
buying akiya in English rarely exist.
So this guide is a resource for
foreigners to find their dream
property in Japan—and at a very
affordable price. In this guide, I hope
to provide useful, actionable
information on how to start your own
search, while saving time and money in
the process.
I would like to also disclose that I am
not a licensed real estate professional
or financial advisor. I simply share
here what I know about buying a
property in Japan as well as my own
research. Before making any major
investment, please seek advice from
qualified, real estate, tax and
immigration professionals.
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?
This guide is dedicated for the
following types of people:
1. You are a resident of Japan and
are ready to settle down.
2. You are a non-resident but frequent
visitor looking to make the most of
your time in this beautiful country or
wish to relocate full time.
3. You are not a resident nor a
frequent visitor but know that you
want to relocate to Japan full time
someday.
4. You may not have fluent Japanese
skills, or perhaps you are simply
overwhelmed by the process and
not sure where to start.
Who is this guide not for?
Buying an akiya is not for you if you:
1. Want to build financial wealth
through real estate investing
2. Are not planning on living there
yourself for the experience
And before we get into the details of
the how, there are a few things you
MUST know as a foreigner in Japan.
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#1 - Buying real estate in
Japan will NOT give you
residency here, if that’s
what you’re after.
Unlike some other countries, Japan
doesn’t have a specific visa for real
estate investors. But don’t worry. If
you’re looking to stay longer than a
typical tourist visa allows, there are
still visa options that might work for
you. So keep your chin up and don’t
give up on your dreams of living and
investing in Japan, just yet.
#2 - Japanese real estate
prices do NOT appreciate,
in general.
In many countries, purchasing a home
is often viewed as a smart investment,
with the expectation that the value of
the property will appreciate over
time.
However, the Japanese real estate
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.
#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
find them
The number of vacant homes, or akiya,
in Japan has reached a staggering 15%
of all properties, estimated to be 10
million by the end of 2023. This is a
consequence of urbanization and
depopulation, with the over-65s making
up one third of Japan’s shrinking
population.
However, it’s important to keep in mind
that akiya often requires extensive
renovations, and budgeting
accordingly is recommended.
Fortunately, finding an akiya has
become easier with the establishment
of akiya banks by NPOs and local
authorities, which can match sellers with
buyers. It’s important to note that only
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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What’s considered too
cheap?
While some popular articles may
suggest that buying a home in Japan
only requires about $500 and a
willingness to live in a ‘ghost village,’
it’s important to be cautious.
The truth is, many extremely cheap
houses in Japan are often abandoned
akiya for which the owner cannot be
traced and are in poor condition.
While it is possible to find majestic
heritage properties for under
$20,000, unless you are a skilled
DIY-er willing to undertake extensive
renovation work, I do not recommend
looking for properties below a
certain price range.
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
listings can be found on Japanese real
estate websites such as AtHome or
Nifty. You can translate these sites in
web browsers like Chrome using built-in
translation functions.
Here are some relevant Japanese
terms that you may encounter:
不動産 (fudohsan) means real estate
(不動産屋 or fudohsanya refers to a
realtor), and 物件 (bukken) means
property.
賃貸 (chintai) or 借りる (kariru) are
rental-related terms, so you can skip
them, whereas 買う (kau) or 購入する
(kounyu suru) mean "to buy."
For types of property, you might
マンション
come across (manshon)
or アパート (apaato) for
土地
apartments, (tochi) for land,
and 一戸建て 一軒家
(ikkodate) or
(ikkenya) for houses.
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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Two indicators relating to the
interior floor plan and size are the
number of rooms (including the
acronym for living, dining, and
kitchen) and the size of rooms in
帖
tatami mats ( ; joh). Whether
rooms are 和室 洋室
(washitsu) or
(yohshitsu), they are measured in
tatami mats rather than square
meters, with one tatami being
about 91x182cm. Note that in
Kyoto and parts of the Kansai
region, the slightly larger Kyoto-
style京間 (Kyoma) tatami
(95.5x191cm) may be used
instead.
Another common unit of
measurement is the 坪 (tsubo),
which is used instead of square
meters to denote the total floor or
land area. One tsubo is roughly
3.3m2, equivalent to two tatami
mats side by side. This site can
convert both standard tatami and
tsubo to square meters.
Some terms that frequently appear in
Japanese floor plans include:
階 一階 階 二階
1 / ,2 / , etc., which refer
to the first floor (ground level),
second floor, and so on.
玄関 (genkan), the front entrance
hall where you usually take off your
shoes before entering the house,
which is on a raised level regardless
of whether it is an apartment or a
house.
押し入れ (oshiire) or (shuuno) for
closet or storage space (in older or
traditional houses it is more likely to
be the latter, with shelving at the
most but rarely a rack for hanging
clothes).
バルコニー (barukonii) for
balcony/terrace.
庭 (niwa) or (tsuboniwa) for a
courtyard garden, which is common
in older and larger homes.
Hiring an intermediary
It may seem like a good idea to work
with a Japanese real estate agent
directly, but I would advise against it
unless you are fluent in Japanese.
English proficiency in Japan is one of
the lowest in the OECD countries, and it
is not commonly used as a second
language. Therefore, realtors may not
be confident enough in their own
English skills to offer assistance and
provide you with the necessary advice.
9
Hiring an intermediary can save you
time and trouble, and if they are
particularly skilled, they may be able
to negotiate a better price for you.
What questions should
you ask an agent?
It is essential to be well-prepared for
viewings or meetings with a realtor,
and this is where an intermediary can
be of help. Keep in mind that a
realtor may not have all the
necessary information on a particular
property, or they may choose to
withhold information unless you
specifically ask for it. Therefore,
persistence is key!
In addition to the important items we
have already covered, there are
some key questions to ask the realtor
when visiting an older property:
When was the building
registration certificate issued?
Is the property currently vacant or
abandoned? If so, for how long
and why? Are there any known
defects?
Has the property been renovated
or rebuilt recently?
Make sure to bring enough memory
on your device to take ample photos
and take notes during the visit.
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
When buying any existing house and
land in Japan, there are five different
taxes to be paid. From most expensive
to least expensive, they are:
Registration tax ( 登録免許税): 2% of
estimated value
Property acquisition tax (不動産取得
税 ): 3% of purchase price
Fixed asset tax (固定資産税): 1.4% of
purchase price
City planning tax ( 都市計画税): 0.3%
of purchase price
Stamp duty ( 印紙税 ): 0 to 20,000
yen or about $150 depending on
purchase price
Also, budget about another 100,000
yen or $740 for lawyer fees. The cost of
the judicial scrivener who will draw up
the contract and carry out the changes
in registration is usually paid by the
buyer.
Getting a mortgage from a
Japanese bank as a non-
resident
Although it is technically feasible to
apply for a loan as a non-resident at
some banks, the success rate is low.
13
Priority is often given to applicants
who have a Japanese spouse or those
looking to purchase investment
properties. Rural properties usually
don't meet the loan criteria. The
shortlist of banks that are open to
lending to non-residents frequently
changes, and unless this is your sole
option, I would strongly advise
exploring other avenues first.
Payment options for non-
residents
There are two main options for non-
residents to purchase a property:
Save and pay all cash
This is the most straightforward
option, and the one I personally chose
when purchasing a house in Japan.
While paying the full amount upfront
may seem like a large commitment,
there are several benefits to consider.
As we've already discussed, property
prices in Japan are generally lower
than in other developed countries,
and with the current depreciation of
the yen against the US dollar, it's a
great time to make a cash purchase.
Additionally, paying in cash can give
you significant bargaining power
when negotiating with realtors,
potentially allowing you to secure a
discount of up to 15% or 20% off the
list price.
Apply for a loan in your
home country
Getting a mortgage for non-investment
property in a foreign country can be
challenging since only a few banks
offer such services. However, if you own
a property in your home country, you
may be able to use it as secured
collateral to secure a loan. It's
advisable to consult with your bank for
further guidance on this matter.
Apply for a loan as a
resident of Japan
If you are a non-resident looking to
apply for a mortgage in Japan, your
options may be limited. However, if
you have permanent residency status
or a spouse who is a Japanese citizen
or permanent resident, you may be
eligible to apply for a loan. Keep in
mind that if your spouse is the joint
guarantor for the housing contract,
they will be responsible for the
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
14
Have yearly income of at least
¥3-5 million ($23,000-$38,000)
The property also must be built in
accordance with the Building
Standard Act, and it should come
with land ownership (i.e. it should
be a freehold property).
Some Japanese banks may request
that you possess enough proficiency
in the Japanese language to
comprehend the loan agreement
terms and be capable of providing
your name and address in Japanese
characters. Otherwise, your
alternatives may be more restricted.
It should also be noted that the
specific requirements outlined above
may differ marginally between banks,
with some offering more
advantageous conditions than others.
Therefore, if you are interested in this
option, I recommend conducting your
own investigation and contacting the
banks directly.
 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.

15
Chapter 5:
Managing your House

16
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
Yearly property taxes are 1.4% of the
government assessed value of the
property, plus 0.3% for city planning
tax. The tax bill arrives in the mail every
year around mid-April and is split into 4
payments. You can choose to pay it all
at once.
Utilities
For a single person, it is advisable to set
aside around 15,000 JPY per month to
cover utility bills. This amount includes
the cost of electricity, which usually
accounts for around half of the total
cost, as well as gas and water
expenses. However, the use of solar
panels is becoming increasingly
popular in Japan, with prices starting at
around 300,000 JPY. By installing solar
panels, you can significantly reduce
your monthly utility costs.
Electricity and gas bills are typically
billed on a monthly basis, while water
bills are issued every two months. If you
have a Japanese bank account, you
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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Insurance
The most common type of home
insurance in Japan is known as "fire
insurance" or "kasai hoken," and while
it is optional, I highly recommend it.
The policy usually lasts for 2 years and
costs between 20,000 to 50,000 JPY.
Despite its name, it offers coverage
that is much wider than just damage
caused by fire, and is similar to home
insurance policies in other countries.
However, it is important to carefully
read the terms and conditions of the
policy before purchasing it. If you
plan to rent out your property, you
can find a policy that includes tenant
liability coverage under the fire
insurance umbrella. It is worth noting
that earthquake or natural disaster
coverage is typically not included in
this policy, even if such an event
causes a fire that damages your
property. For that reason, I strongly
recommend considering a separate
earthquake insurance policy and
carefully analyzing the costs and
benefits beforehand, as prices can
vary widely.
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

shu@postfi.co

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