The word “bank” is a little misleading and reflects Japanese usage of the English loan word. Their aim is not just to find buyers for the akiya, but to revitalize the village. To address this, local governments throughout the country created akiya banks-offices specialized in looking for new owners for akiya. When these services disappear, the decline of the village accelerates. Without a stabilization of the population, services like supermarkets, medical centers, care homes, schools, shops and restaurants aren’t viable. Akiya banksĪkiya are not just an issue of falling demand and collapsing buildings, unoccupied homes also bring down the value of the surrounding houses and the lack of new residents is a threat to the survival of whole villages and towns. To total this up, on your JPY 2,000,000 purchase you can expect to pay another JPY 400,000 or so in taxes and fees. On our hypothetical JPY 2,000,000 purchase, this would be a maximum of JPY 132,000. This is limited by law to 3% of the sale price + JPY 60,000 + consumption tax. Although it would be illegal in many Western countries, Japanese real estate agents can collect a commission from both the seller and the buyer. Unless you are using an akiya bank, or buying a foreclosed property, you will also need to pay the real estate agent. #Abandoned homes for sale registration#The cost of the “judicial scrivener” (司法書士) who will draw up the contract and carry out the changes in registration is usually borne by the buyer. Stamp duty: 0 (stamp duty is zero up to 5 million yen)Īdditionally, you should budget about another JPY 100,000 for lawyers fees.If you were to purchase an akiya for JPY 2,000,000 but with a government estimated book value of JPY 4,000,000, the additional tax costs would be: Sample costs breakdown for taxes and fees As property prices outside the big cities have been falling for more than 20 years, and the government estimate was likely done in the past, this is likely to be much higher than the purchase price. The big variable is the first tax, which is on the government estimated value rather than the purchase price. Stamp duty (印紙税) – 0 to 20,000 yen depending on purchase price.City planning tax (都市計画税) – 0.3% of purchase price.Fixed asset tax (固定資産税) – 1.4% of purchase price.Property acquisition tax (不動産取得税) – 3% of purchase price.Registration tax (登録免許税) – 2% of estimated value.From most expensive to least expensive, they are: When buying any existing house and land in Japan, there are five different taxes to be paid. #Abandoned homes for sale free#The other thing to be aware of with free or very cheap houses are the taxes that you have to pay in addition to the purchase price. The preference for those is young families. One condition could be that you agree to live in the town for a certain number of years before you obtain the title to your house. But in both cases they come with strict conditions attached. Recently some municipalities have started to get more creative with their approaches to dealing with akiya, even offering to help cover some of the extra costs involved, and a small number of municipalities in rural areas do offer free houses.
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