Japanese House Construction: Are Akiya Renovations Worth It?

Buying property is a huge milestone for anyone. But if you have recently purchased an akiya or obtained a free house in Japan, you may want to prepare yourself for some renovation work.

Japanese house construction or reconstruction ranges from what needs to be fixed to how much it will cost.

Here, we explain the renovations that would need to be done for an akiya in Japan to help you make an informed decision about whether akiya renovation aligns with your budget, timeline, and goals.

An overview of Japan's abandoned houses (akiya)

The Ministry of Internal Affairs and Communications found that 13.6% of all houses in Japan were abandoned in 2018. Reasons range from the shrinking population to property taxes, city preferences, and not wanting to inherit these homes.

As a result, these Japanese abandoned houses tend to be old, vacant, and unmanaged, leading to much-needed akiya renovations.

The Japanese government acknowledges these issues and has offered subsidies, tax deductions, and support programs to incentivize renovations for akiya houses.

Are there any government incentives for akiyas?

Back in December 2023, the Japanese government passed a law to encourage owners to maintain their vacant homes. The law was accompanied by various incentives and programs to encourage residents and foreigners to buy and renovate these akiyas.

The incentives were generally as follows:

• Rent affordability support system: a maximum of 40,000 yen per month to help with rent.

• Repair construction cost support system: a subsidy of up to 1 million yen per house to help with a Japan house renovation and ensure up-to-date safety standards.

• Vacant house demolition subsidy system: a certain amount is given to help with demolition costs to make new land use.

Additionally, these support systems have specific eligibility requirements that will vary between prefectures, cities, and local municipalities.

Why should you have an akiya house renovated?

There are three main reasons why people purchase akiya houses in Japan: to live in them, to use them as vacation homes, or to make investments in Japan's real estate market.

All three reasons require the akiya house to have a new life for its new function. As such, these properties will need reconstruction and renovation.

Depending on the property's age and deterioration, only renovations may be required, such as minor plumbing and electrical wiring vs reconstruction for a more earthquake-resistant building and better insulation.

Essential due diligence: What needs to be checked for an akiya house?

Traditional houses might have mold, termite damage, or structural issues in rural areas.

Be sure to have an inspector determine what needs to be repaired and learn the estimated costs for the needed repairs. Ask questions such as: Does it sit directly on the floor? Are the beams and frame in good shape? etc.

Here's a checklist to run through if you're considering purchasing an akiya:

Legal and administrative

• Verify clear title ownership through local legal registry

• Confirm property boundaries and any easements

• Check zoning restrictions and building code compliance

• Research any outstanding taxes or liens

• Understand inheritance laws if the property was inherited

• Verify utilities availability and connection costs

Physical inspection priorities

• Foundation stability and structural integrity

• Roof condition and water damage

• Electrical system safety and capacity

• Plumbing functionality and water quality

• Insulation adequacy for local climate

• Pest damage, particularly termites

• Mold and moisture issues

• Earthquake resistance compliance

Neighborhood considerations

• Access to essential services (medical, grocery, emergency)

• Public transportation availability

• Internet connectivity options

• Community acceptance of foreign residents

• Local contractor and service provider availability

How much does it cost to renovate a house in Japan?

Level 1: Basic habitability (¥2,000,000-¥5,000,000)

Timeline: 2-4 months

Essential repairs to make property livable:

• Wallpaper/flooring replacement: ¥800-¥1,200 per sqm

• Basic kitchen functionality: ¥300,000-¥600,000

• Bathroom renovation: ¥400,000-¥800,000

• Electrical safety upgrades: ¥200,000-¥500,000

• Plumbing repairs: ¥150,000-¥400,000

• Pest treatment and prevention: ¥100,000-¥300,000

Result: Functional but basic living space, suitable for immediate occupancy but not modern amenities.

Level 2: Modern Comfort (¥5,000,000-¥15,000,000)

Timeline: 4-8 months

Comprehensive updates for contemporary living:

• Complete kitchen renovation: ¥800,000-¥1,500,000

• Full bathroom modernization: ¥1,200,000-¥2,000,000

• HVAC system installation: ¥600,000-¥1,200,000

• Insulation upgrade: ¥1,000,000-¥3,000,000

• Window replacement: ¥500,000-¥1,200,000

• Interior design and finishing: ¥1,000,000-¥2,500,000

Result: Comfortable modern home meeting current lifestyle expectations.

Level 3: Complete Reconstruction (¥15,000,000-¥40,000,000+)

Timeline: 8-18 months

Structural overhaul for maximum safety and comfort:

• Foundation reinforcement: ¥2,000,000-¥5,000,000

• Seismic retrofitting: ¥1,500,000-¥3,000,000

• Roof replacement: ¥1,500,000-¥4,000,000

• Complete rewiring and replumbing: ¥1,000,000-¥2,500,000

• Architectural redesign: ¥2,000,000-¥5,000,000

• High-end finishes and appliances: ¥3,000,000-¥8,000,000

Result: Essentially new home built within the existing structure.

Serious akiya house issues require major repairs, including foundation issues and installing earthquake-resistant materials.

Working with an architect or renovation firm will help you understand the traditional methods or conventional construction method that was used on your house, along with what type of renovations would be feasible within your budget.

Your styling preference will also determine the methods for major reconstructions, such as whether you prefer a traditional Japanese house or a more Western style.

Depending on the size of the property, these major akiya repairs could cost at least ¥10,000,000 and more.

What are some lesser-known renovation costs in Japan?

Regulatory and professional fees (10-15% of renovation budget)

• Building permits and inspections: ¥200,000-¥800,000

• Architect/structural engineer fees: ¥1,000,000-¥3,000,000

• Legal and administrative costs: ¥300,000-¥600,000

Temporary living and storage (¥200,000-¥500,000)

• Alternative accommodation during renovation

• Furniture storage if property contains items

• Transportation costs for remote properties

Utility connection fees (¥300,000-¥1,200,000)

• Electricity: ¥50,000-¥200,000

• Water/sewage: ¥100,000-¥500,000

• Gas: ¥80,000-¥300,000

• Internet/phone: ¥50,000-¥200,000

Is it worth it to renovate an akiya?

The answer to this question depends on how much renovation is needed. Some will be fine with a functional house with few cosmetic repairs, while others would like a complete Japanese house built from scratch.

Talk with professionals such as inspectors, architects, and real estate agents about how to proceed accordingly.

Tips for Japanese house construction

Japanese house reconstruction for an akiya is different from how home reconstruction is done in America. To help save you time, effort, and money, here are 3 points to consider:

• DIY vs. professionals: While taking on any project yourself will be cost-effective, hiring professionals ensures quality and can solve any upcoming problems.

• Always prep: understanding the layout of your house, such as where pipes are, is crucial before any major repairs.

• Wallpaper vs wall paint: In Japan, using wallpaper is more common than painting your walls. To paint your walls, you must prepare the surface by removing the vinyl.

How to use MailMate to help with akiya renovations

It might be hard to find someone who knows English in rural Japan, making the akiya renovation a little more difficult than it should be. That's why services like MailMate are here to help. 

MailMate will call to help connect your property to gas, water, and other utilities. Additionally, MailMate can help with setting up the internet, cleaning, and land maintenance for a smooth akiya renovation.

Here's a quick run-through of MailMate's features for property owners:

a. Bilingual staff

MailMate's bilingual staff are fluent in Japanese and English and can serve as a trusted communication bridge between you and whichever Japanese service you need.

For example, if you need your water supply inspected, let MailMate know. We will contact the local company and have them visit and check the water quality.

b. Schedule maintenance and services 

Keep your property up and running through MailMate's property management services, ideal for owners who want to manage their Japanese property from overseas.

MailMate helps owners with the following and more!

• Utilities set up

• Getting fire and disaster insurance

• Setting and scheduling internet

• Regular cleaning and yard work

MailMate will be your communication bridge by contacting the services on your behalf so you can sit back and relax.

c. Tax agent service

Once you own a property in Japan, you become responsible for property-related taxes. Paying Japanese tax bills can be difficult when you are not in Japan.

But don't worry. If you make MailMate your tax representative, they will help with the paperwork to ensure you and your property stay tax compliant.

Frequently asked questions

What happens if I find out there are legal issues with the property after purchase?

Always conduct thorough due diligence before purchase. If issues arise post-purchase, you may have legal recourse depending on disclosure requirements, but litigation in Japan can be expensive and lengthy. Title insurance isn't standard in Japan, making pre-purchase verification crucial.

How much should I budget beyond the stated renovation costs?

Plan for 130-150% of initial estimates. Cost overruns of 20-30% are common due to hidden structural issues, regulatory changes, or material price fluctuations. Additionally, budget for temporary accommodation, storage, utility connections, and professional fees that aren't always included in contractor quotes.

Are renovation loans available for akiya properties?

Japanese banks offer renovation loans, but approval depends on property condition and your residency status. Interest rates range from 1.5-4% for residents, with terms up to 35 years. Non-residents typically need cash or financing from their home country. Some municipalities offer low-interest loans as part of revitalization programs.

In closing

Renovating an akiya house or doing a full Japanese house construction are options for rebuilding an akiya home.

Factors such as budget, functionality, and personal style affect how your house should look and function.

So, by weighing the costs and benefits, you can make an informed decision about rebuilding your akiya house.