FAQs

There are several reasons for the abundance of akiya, or abandoned houses, in Japan:

1. Population Decline: Japan has a shrinking and aging population, leading to a reduced demand for housing, particularly in rural areas.
2. Urban Migration: Many people are moving from the countryside to urban centers like Tokyo and Osaka, leaving rural homes empty.
3. Inheritance Issues: Heirs may inherit properties but choose not to maintain them, either due to financial constraints or lack of interest.
4. Cultural Preferences: There is a strong preference for new homes over older ones among Japanese buyers, resulting in many older homes being left unoccupied.
5. Economic Factors: Some rural areas have limited job opportunities and amenities, making them less attractive places to live.

These factors combine to create a significant number of unoccupied homes, especially in rural regions.

Cultural preferences play a significant role in why many Japanese people are not interested in purchasing akiya (vacant homes). Here are the detailed aspects of these cultural preferences:

1. Preference for New Construction:

   1. Cultural Value of Newness: In Japan, there is a strong cultural emphasis on newness and modernity. New homes are seen as symbols of success and progress, while older homes can be perceived as outdated or inferior.
   2. Aesthetic Preferences: Modern Japanese homes often feature contemporary design, advanced technology, and efficient use of space, which are highly valued by many buyers.
2. Tradition of Custom Homes:

   1. Personalization: Many Japanese families prefer to build custom homes to suit their specific needs and tastes, ensuring that every aspect of the house meets their standards and desires.
   2. Quality Assurance: Building a new home allows buyers to be confident in the quality of construction and materials used, as well as compliance with current safety standards.
3. Perceived Stigma and Superstition:

   1. Negative Associations: Some akiya may carry a stigma, especially if they have been abandoned for a long time or associated with negative events, such as deaths or bankruptcies.
   2. Spiritual Beliefs: Traditional Japanese beliefs in spirits and the supernatural can make some people wary of living in homes that are believed to be haunted or have bad luck attached to them.
4. Urbanization Trends:

   1. Urban Living: There is a strong trend towards urban living in Japan, with people preferring to live in cities where jobs, education, healthcare, and entertainment options are more accessible.
   2. Convenience: Urban homes often offer better access to public transportation, shopping, and other services.

   These cultural preferences, combined with practical considerations, contribute to the reluctance of many Japanese people to purchase and renovate akiya, despite their availability and often low cost. Instead, the preference leans towards new, custom-built homes in urban settings that align with modern lifestyles and cultural values.

Yes, a foreigner or non-resident can buy property in Japan. There are no specific restrictions on foreign nationals owning real estate in Japan, whether it's residential, commercial, or land. Key points to consider include:

1. Visa Status: You don't need a special visa to purchase property. However, owning property does not automatically grant you residency or a visa.
2. Financing: Obtaining a mortgage from a Japanese bank can be challenging for non-residents. Many banks require the borrower to have permanent residency or at least a long-term visa. Some foreign banks and international mortgage providers might offer financing options, but interest rates and terms may vary.
3. Legal Requirements: You will need to navigate the Japanese legal and administrative procedures, which include registering the property. It's advisable to hire a real estate agent who is experienced with foreign buyers, as well as a legal representative who can help with the paperwork and ensure that all processes are followed correctly.
4. Taxes: Be aware of the various taxes associated with buying and owning property in Japan, including registration and license tax, property acquisition tax, fixed asset tax, and city planning tax.
5. Ownership Rights: In Japan, land and building ownership are separate. This means you can own a building on a piece of land without owning the land itself (leasehold), or you can own both the land and the building (freehold).
6. Cultural and Language Barriers: Understanding the local market, legal terminology, and cultural nuances can be challenging. It's highly recommended to have a bilingual agent or interpreter to assist with communication.

If you are seriously considering purchasing property in Japan, it's advisable to visit the country to get a feel for the area and property market, and to meet with professionals who can guide you through the process.

No, purchasing property in Japan does not grant you any special residency or citizenship benefits. Here are the key points regarding residency and citizenship in Japan for property owners:

1. Residency: Owning property in Japan does not provide any automatic residency rights. If you wish to live in Japan, you must apply for the appropriate visa through the regular immigration process. Common visa options include work visas, student visas, and investor/business manager visas. Each visa type has specific requirements that must be met independently of property ownership.
2. Investor/Business Manager Visa: While owning property alone doesn't qualify you for this visa, investing in a business or managing a business in Japan can lead to eligibility. This visa requires you to establish a business office and employ staff in Japan, along with other criteria. Property ownership might support your application if it's part of a broader business investment plan.
3. Digital Nomad Visa: On March 29th 2024, Japan's Ministry of Foreign Affairs officially announced a new "Digital Nomad" visa, intended for remote workers with an annual income of ten million yen or more. The Digital Nomad Visa will allow holders to work remotely in Japan for up to six months (once this period is exceeded, the applicant must wait for six months to reapply for the same visa status). The new visa presents a great opportunity for those in the relevant sectors to immerse themselves deeper in Japan.
4. Permanent Residency: Permanent residency in Japan is not granted through property ownership. To apply for permanent residency, you generally need to live in Japan for an extended period (usually 10 years), demonstrate good conduct, have sufficient financial stability, and meet other criteria. Specific categories, such as highly skilled professionals or spouses of Japanese citizens, might have shorter residency requirements.
5. Citizenship: Naturalization to become a Japanese citizen also requires long-term residence and meeting stringent criteria. This includes living in Japan for at least five consecutive years, demonstrating good conduct, having financial stability, and renouncing your previous citizenship, as Japan does not allow dual citizenship.

Therefore, while buying property in Japan can be a good investment and potentially support a broader plan to establish residency through business activities, it does not in itself confer any direct residency or citizenship benefits. If your goal is to live in Japan, you will need to pursue the appropriate visa and residency pathways independently of your property investment.

No, you do not need to physically be in Japan to buy a house. You can complete the purchase remotely by hiring a reputable real estate agent and a legal representative or judicial scrivener, who can handle the paperwork and legalities on your behalf, possibly through a power of attorney. Ensure all documents are translated for your understanding, and consider opening a Japanese bank account for smoother transactions. Use modern communication tools for video calls and digital document signing, and consider a third-party inspection of the property. However, visiting Japan at least once is advisable to see the property, understand the area, and meet your representatives in person.

Converting an akiya (vacant home) into an Airbnb or short-term rental property in Japan is possible, but it involves several considerations and legal requirements:

1. Zoning Regulations: Check local zoning laws and regulations to ensure that short-term rentals are permitted in the area where the akiya is located. Some municipalities have specific rules or restrictions on short-term rentals to mitigate potential issues such as noise, overcrowding, and disruption to residential neighborhoods.
2. Building Code Compliance: Ensure that the property meets all necessary building codes and safety standards for use as a rental property. This may involve making renovations or upgrades to improve safety, accessibility, and comfort for guests.
3. Business Registration and Taxation: Register your Airbnb business with the local government and obtain any required licenses or permits. You will also need to comply with tax regulations for rental income, including income tax and consumption tax.
4. Neighborhood Considerations: Consider the impact of short-term rentals on the local community and neighbors. Communicate openly with neighbors about your plans and address any concerns they may have regarding noise, parking, or other issues.
5. Management and Operations: Develop a plan for managing and operating the Airbnb property, including guest check-in and check-out procedures, cleaning and maintenance schedules, and guest communication. You may choose to manage the property yourself or hire a property management company to handle these tasks.
6. Insurance: Obtain appropriate insurance coverage for the property, including liability insurance and property insurance to protect against potential damage or accidents.
7. Cultural Sensitivity: Be mindful of cultural norms and customs when hosting guests in Japan. Provide clear instructions and guidelines for guests, respect local customs and traditions, and ensure that guests understand and follow house rules during their stay.

Overall, while converting an akiya into an Airbnb can be a viable option for generating income and revitalizing vacant properties, it's essential to consult with experts, comply with legal requirements, and consider the impact on the local community to ensure a successful and sustainable rental business.