Foreigners flipping abandoned Japanese homes for a steal
Feeling stuck about Australian property market prospects? There’s a growing trend of people looking overseas for their dream home, but be warned: “Everything is not as it seems.”
Japan’s declining and city-dense population has left room for foreigners to play house in the country’s abandoned homes.
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This year, the number of homes sitting empty in Japan surged to nine million, accounting for 14 per cent of all residential properties in the country.
Not all of these properties, known as ‘akiya’, have been completely abandoned; some have owners who work overseas, and some are simply holiday homes.
But many akiya can also be blamed on rural depopulation.
They struggle to be filled with renters, while some potential buyers or inheritors are turned off by the financial burden of maintaining or tearing down older buildings.
For some foreigners, akiya being sold on the cheap is viewed as a golden opportunity, especially when it comes to traditional-style Japanese homes.
The trend is not new, but has become increasingly popular over the past few years as people share their renovations on social media.
Big dreams on small budgets
Moving to Japan in 2023 with a startup visa (a visa introduced in 2018 meant to help foreigners start businesses in the country), American couple Evan and Dani Benton bought a traditional-style property that had been sitting abandoned for a decade on Ōmishima Island with $9292 ($13,891).
After six months of renovations costing $29,000 ($43,354), they were able to begin running the property as a guesthouse, available in its entirety to solo or groups of tourists.
The pair reside in nearby akiya they had purchased for $18,500 ($27,656) and renovated.
They intend to focus on running their guesthouse and expand their new farming business, selling everything from honey to tomatoes.
“On our budget, it wouldn’t have been possible to do this in the United States,” Benton wrote for CNBC.
Similarly, Swedish TikToker Anton Wormann (known as @antoninjapan) has flipped several akiya with friends.
He has built a large social media following while sharing insight into his ventures, ranging from a $100,000 ($149,673) home in Tokyo to a $15,000 ($22,449) farmhouse an hour train ride away in Kujikuri.
@antoninjapan Before & After | My Japan Home Renovation #Tokyo #Akiya #2024 #renovation #Japandihouses #Antoninjapan #before #after ♬ original sound – Anton in Japan 🇯🇵
Wormann told BBC the lack of interest in akiya locally in Japan came from a “non-existing renovation culture” and the fact older akiya were built to outdated earthquake-resistance standards.
Potential pitfalls
These adventurous renovators appear to be living the dream, but there are pitfalls their followers might not be aware of.
It can be difficult to gain permanent residency in Japan, and even more so to become a citizen – so some foreigners may have to abandon their renovated homes.
There may be structural dangers associated with outdated earthquake-resistance standards, loads of abandoned belongings, and renovation costs may be steep depending on the level of damage to an akiya and how long it has been abandoned.
Choosing an akiya in the countryside may not only limit chances to experience city life or widen social circles, but also restrict career opportunities.
Although flipping homes may be seen as a good money-making opportunity in many Western countries, the lack of interest from local buyers and renters may stifle success in Japan.
There is also no guarantee floods of tourists for short-term rentals will instantly make up for renovation costs; Benton revealed her guesthouse netted about $14,000 ($20,933) in revenue between November 2023 and October 2024.
“But even with the renovation, I still think we’re going to have our dream house for less than the cost of what we could have bought anything in the UK for,” UK-born Sam King, who moved to an akiya in Ōtsuki with Tokyo-born-and-raised wife Nanami, told BBC.
“I would totally recommend it, but be prepared that everything is not as it seems on the Instagram posts and you have to look beneath the surface a little bit.”