The Real Cost of an Akiya: Repairs, Taxes and Running Costs

Headlines about houses in Japan for the price of a used car are true, but the purchase price is often the smallest part of the bill. This checklist covers what comes after.

One-time costs at purchase

• Agent's fee: up to ¥300,000 plus tax for properties priced at ¥8 million or less.
• Taxes: real estate acquisition tax and registration tax, both based on the assessed value, which for old rural houses is often low.
• Judicial scrivener's fee for registering the transfer.
• Stamp duty on the sale contract.

Repairs

Houses that have stood empty for years usually need some of the following:
- Roof and gutters: leaks are the most common and most damaging problem.
- Plumbing and the septic tank: old pipes, wells and septic tanks may need replacing.
- Electrical wiring: old wiring may not handle modern appliances.
- Termites and rot in floors and foundations.
- Seismic reinforcement for buildings permitted before June 1981.
- Clearing out belongings: many akiya come full of the previous owner's furniture.

Get a building inspection (home inspection) before you buy, and quotes from local builders.

Running costs every year

• Fixed asset tax: standard rate 1.4% of the assessed value, plus city planning tax of up to 0.3% in some areas. Small residential plots get a large reduction on the land portion, but the town can remove it if an empty house is left in poor condition.
• Fire and earthquake insurance.
• Basic utility charges, even when nobody lives there.
• Maintenance: grass cutting, airing the house and snow clearing in snowy regions.

Subsidies

Many towns offer subsidies for renovating or demolishing akiya, or for moving to the area. Most require you to register as a resident, so check the conditions before counting on them.

Use the estimates

Each akiya page on this site estimates repair costs and annual running costs from the floor area, year built and condition, so you can compare houses by their real cost rather than the asking price.