15 ms·

Houses in Japan are going for as little as $500

224 points by prostoalex 5y ago

Aeolun 5y ago
With certain pre and post conditions.
CobaltFire 5y ago
These don't have "minor" loopholes to renovation or occupation. Typically these will require the use of licensed craftsmen who can restore the building if they are the older style, and almost all will require 5-10 year occupation agreements and/or agreements to productively farm the land it comes with. Further, there are strict restrictions on ownership by foreigners, and most of the akiya bank properties aren't eligible last I looked. Those that are will have little to no internet, you will be an hour or more away from a decent sized city, and you'd better be fluent in Japanese because noone in these communities will be fluent in anything else. Even signage in many of these places is lacking the English foreigners that have traveled there will be used to. For reference I've lived in Japan, have a Japanese spouse, and my children are dual citizens. We have investigated this going on 15 years now and it's just not something you'd want to take on, if you were able to, most of the time.
- jdhn 5y ago
  I'm curious as to what the rules on foreign ownership are. Is it an outright ban, or can it be circumnavigated by having a Japanese lawyer draw up some sort of agreement where they are the owner, but the foreigner pays them $X a month, or something like that?
  - rootsudo 5y ago
    There are anti-dummy laws in Japan.
  - CobaltFire 5y ago
    These require residence at the property, and if you can't get a residency permit (rather difficult for the amount of time needed by this agreement) then it's a defacto no foreigners rule for these homes.
  - henearkr 5y ago
    Some estate agencies, who don't want to sell estate to a foreigner but would not openly say it, just let some other Japanese customer (who appeared suddenly) take the precedence and buy instead of you. Source: unfortunately I can relate...
    - jowsie 5y ago
      It doesn't even have to be that underhanded. Many rental agencies will ask house owners if they want foreigners or not, it's a simple tick box.
      - henearkr 5y ago
        Yes but in this case it's to sell it not to rent it. I can (almost) understand that you don't want foreigners in the apartment that you own, but in this case they don't even want to receive money -- the same amount -- from foreign buyers, and in this case it's clearly because they want to protect their village from "being invaded". Yes pretty ridiculous, but unfortunately very common.
- rootsudo 5y ago
  There is no strict laws on foreign ownership, most of the time this falls under the idea that people/foreigners think owning land gives you a right to reside in the country. It does not. Then not knowing procedures or having a Hanko is extremely detrimental to doing any paperwork in Japan. Internet is not an issue, NTT will give you internet within 3 months, and there is always unlimited 4g/5g subscriptions. Being in the Inaka is an experience itself, and you need to know the language. I agree.
  - CobaltFire 5y ago
    Given that these require residency, there is a defacto restriction on ownership for those without the means to get a long term visa or residency permit. I was not aware of NTT getting you internet; thanks for that info! I seem to recall the wireless unlimited plans being rather expensive, but it's been a while. Yes, Japanese government is it's own special issue. Hanko being an always fun issue for people! I absolutely LOVE being in the Inaka. When my in-laws shut down their business they moved a little ways out, and we regularly visit their family friends in the mountains at their Onsen, which is a solid 40 minutes from anyone else at all.
    - rootsudo 5y ago
      Yep, as long as you have utilities, then you can get NTT Fiber. It is much easier if it has a pre-existing phone line active, or sometime per-existing. Considering these properties were most likely occupied during the 1970's-1990's, a phone line most likely is present so it is on the "books" as serviceable. If not, you get the phone line service first if you must. Alternatively you can also look in TOWNPAGE for the address and see if it shows up.
    - fomine3 5y ago
      NTT Flets coverage is really good since they'll replace PSTN by FTTH. Wireless unlimited (*with speed limit for heavy users) internet is now affordable thanks to 5G plan.
  - derefr 5y ago
    Parent comment said "restrictions" on ownership by foreigners, not "laws". The "restrictions" are semi-informal, barriers put in place as needed, in the form of a bunch of extra costly-to-satisfy red tape that isn't usually insisted upon, but which becomes a "must have" if you're someone the local Japanese-nationalist NIMBYs don't want living there. (I would note that white people aren't likely to be hardest-hit by these "restrictions." Consider which ethnic groups an elderly Japanese person would remember directly fighting against in a previous war. Those same elderly Japanese people now form the inaka's governments, so AFAICT those same ethnic groups are most resisted.)
- ashtonkem 5y ago
  Anytime something seems too good to be true, it usually is.
- aero-glide2 5y ago
  Shouldn't be a problem with Starlink, $100/month for 50-100Mbps.
  - marcinzm 5y ago
    You mean except for the part where isn't not available in Japan right now.
    - ctdonath 5y ago
      By now before Starlink becomes available and a flood of people jump on the opportunity - happening soon.
    - aero-glide2 5y ago
      Arriving 2022 for Japan.
- dpedu 5y ago
  How much have things changed in these 15 years? Are prices and regulation rising or falling?
  - CobaltFire 5y ago
    It's been pretty static, honestly.
- tvanantwerp 5y ago
  Reminds me of an economics joke: Two economists are walking down the street. One spots a $20 bill on the sidewalk. He bends to pick it up, but his companion stops him. "If there really were free money in the street," the companion says, "then somebody else would've picked it up before now."
  - dathinab 5y ago
    I don't like the joke, tbh. Because: - In somewhat professional bussiness areas there is in general no free mony, but not because no one picked it up but because no one would place the money down/accidentally let it fall down without noticing. - But in specific contexts there is "free money" it's just that "in general" this context doesn't apply to you, e.g. there if you are Japanese person who wants to spend the next decade farming in the country side this might be a awesome deal for you. - But the "mony on the ground" analogy represents a "general but rare" situation, not a "very specific context", but you can find money on the ground and it's always worth picking it up, BUT you should check if there is a string attached to it (in that case literally ;=)). So for me the joke sounds like what someone would try to argue in self defense when doing a bad deal to reason that all is fine because they are not "blind sighted economists". In my environment (or more precise that of my dad) I have seen people going in that direction of "picking up free money" and making exactly this kind of jokes only to lose all the money they had maneuvering themself into a situation of basically falling into poverty not long before they normally could have gone into a nice reasonable wealthy retirement...
    - tacostakohashi 5y ago
      The humor in the joke comes from the mismatch between economic theory and reality.
      - alentist 5y ago
        Elaborate, because it sounds like a strawman.
        5y ago
- jimmaswell 5y ago
  We could do with some strict rules on foreign ownership here in the US. Seems questionable when all the housing in a neighborhood is owned by Chinese investment firms.
  - Hnrobert42 5y ago
    Probably the occupancy requirement would take care of the issue better.
    - hellbannedguy 5y ago
      In my neighborhood, many are occupied by a non-english speaking person, or small family. (I'm not saying anything racist. I just know a few individuals whom shop at Safeway whom live in million plus homes that don't speak English. I feel we need more that a occupancy requirement. We need some hard requirements, a long with not allowing hedge funds to buy homes. This goes for American corporations too.)
      - rfrey 5y ago
        Some hard requirements that go beyond occupancy rules and forbidding hedge funds from buying houses. What are your suggestions?
  - csomar 5y ago
    So only US persons and companies can buy in the US right? That means Chinese investment firms can still buy but dude who is on some long-term visa can't. Either way, real estate should be a free market. In the same vein you can buy any real estate you like, a seller should be able to sell to any entity that's giving him the better price.
    - jimmaswell 5y ago
      I think real estate has proven to be somewhat of a market failure when so much is taken up by landlords and investment firms driving up prices without providing much or any value. The pandemic has only made this worse as big firms ride out the storms and buy even more land on the cheap to rent back out at an obscene profit. My parents used to pay $1000 a month in rent for a property that I know the taxes on amounted to maybe $3000 a year, and the landlord rarely did anything else than pay that tax. Sent a bargain basement repair guy out a few times to fix the heater maybe. That's 300% profit for nothing, pure rent seeking behavior. That's not good for society. More needs to be done to encourage individual home ownership and discourage people having no choice but to send a third to half of their income into a black hole every month.
- Karrot_Kream 5y ago
  I know this is off-topic and not your fault in any way, but I'm tired of the "spousal perspective" on this site when it comes to East Asia. Somehow most of the East Asian perspectives we get here are partners of East Asian folks, despite East Asia having lots and lots of engineers.
  - math-dev 5y ago
    I understand your perspective. However the solution is for those native to East Asia to post, not non natives to post less. I agree that more viewpoints is better, just wanted to point that
  - CobaltFire 5y ago
    Does that make my perspective as someone who lived there invalid? In this case the "spousal perspective" is that we aren't subject to many of these barriers and we STILL aren't purchasing one due to the remaining barriers and issues.
    - Karrot_Kream 5y ago
      It most definitely does not, and as I said it's not your fault in any way. I would just appreciate more non-spousal perspectives, especially when it comes to things like Japanese nationalism where it helps to have a Japanese perspective.
      - hattori31 5y ago
        Speak Japanese then.
        Karrot_Kream 5y ago
        もう分かりますけど？
  - thaumasiotes 5y ago
    You're going to have to take what you can get on an English-speaking forum. Move to a Japanese forum and you can find all the Japanese perspectives you want.
- deleted 5y ago
  [deleted]
- simonebrunozzi 5y ago
  Thanks. Out of curiosity, do you still live in Japan? Or, if not, what do you miss it the most?
  - CobaltFire 5y ago
    I moved back last year in the middle of the pandemic. Honestly, life in Japan is much more relaxed for me. I’m not as competitive, not as wrapped up in being successful. That’s a very individual thing, but that disconnect was my favorite thing. I know I was an outsider and I was fine with that.
    - simonebrunozzi 5y ago
      Thanks. Were you in Tokyo, or elsewhere? I spent 3 months in Kyoto in 2020 (just at the beginning of the pandemic) and really liked it there. Would love to go back for a few more months in 2022, and possibly study some basic Japanese (I only learned some Hiragana so far)
- ddoran 5y ago
  Correct me if I'm wrong, but Japan does not allow dual citizenship ... rather your children are young enough that they have not had to declare their ultimate citizenship? My wife and I are naturalized US citizens. My country of origin allows me to retain dual citizenship, as does the US, but my wife was obliged to renounce her Japanese citizenship when she became a US citizen. It's annoying and unfortunate that she had to do so.
  - CobaltFire 5y ago
    Japan does not consider someone an adult capable of making that decision until they are 20. Further, they won't force the decision (nor will the US) even after that point. This leads to interesting issues. One such individual was in training with me but had to sit and wait 6 months until he turned 20 to renounce his Japanese citizenship so that he could obtain a clearance. This was 20 years ago, so things may have changed.
- hintymad 5y ago
  A side topic: I also find English translation of Japanese locations and names often loses much meaning. It's almost unbearable to live in Japan and uses only English translation. For instance, Miyamasou does not mean a thing for English-speaking foreigners, but the corresponding Kanji or Chinese translation, 美山庄，means a ton.
Finnucane 5y ago
Japan isn't alone in having a problem with rural depopulation. Much of Europe as well. These cheap houses are not always going to be move-in ready, and there may be limitations on foreign ownership. So due diligence is in order.
- nicbou 5y ago
  The small roads of Poland and the Czech Republic are flanked by abandoned houses. Parts of France and Germany are the same. Most jobs are in the city, as are schools and interesting places. Village life isn't for everyone. I'm considering those all the time when I drive by them, but the price likely isn't low enough to get me to live there, away from everything I enjoy.
  - Finnucane 5y ago
    There are places in the US where you can buy houses for a tiny fraction of what a condo would cost in a major city, but the problem are the same--you will have to invest in rehab, the local economy is probably not good, etc. On the other hand, if you can still do remote work and get money that way, you could make a go of it. But it wouldn't be easy.
    - ghaff 5y ago
      And broadband Internet may well be an issue. 5G may help in some cases although my dad's house which doesn't have broadband also has almost non-existent cellular service. (There's a hot spot but it's limited in both speed and amount of data. Basically no streaming.) Starlink should help in this regard. You don't really have good alternatives to landline broadband today in the US generally.
      - Sebb767 5y ago
        In theory, you could also invest into laying a local fiber cable. It's not cheap (think 4 to 5 digits), but depending on the location, it might be worth it.
Wesxdz 5y ago
Long term I see housing collapsing and going negative maybe around 2030 (ie countries like Japan/Spain/South Korea) paying foreigners to move into akiya, it's a compelling case for young remote workers in the US who have been priced out of the real estate market in nice cities en masse to abandon their landlords in favor of something like this.
- ethbr0 5y ago
  The anti-foreign NIMBY reaction is going to be curious. From a national, demographic, and budget perspective, this has to happen for many countries (quickly, at large scale). From a local, cultural perspective, I see people being very resistant (relatively speaking wealthy, culturally-ignorant foreigners moving in in large numbers?). In democracies... that's going to be an interesting mix. Especially when current residents are the primary voters. I expect we'll see more successful countries form political alliances between immigrants and parties pushing for more skilled worker immigration.
- Ekaros 5y ago
  I think it will stay multimodal market. Some places will continue going up, that is the most desirable and most supply limited cities. Some will follow inflation, that is smaller well planned towns that can support themselves, but aren't in massive growth. And then in some places will or already have negative value. Like some "HOA" in Finland being unable to get loans for basic renovation and having to demolish house. With owners being left with debt...
mast22 5y ago
Same goes for Sicilian real estate. Houses require a major restoration, but they cost just 1 euro.
haunter 5y ago
What about the visa/residency though? Isn't Japan ultra strict about that?
- post_break 5y ago
  Correct, Gaijin would need not apply. Getting a regular apartment in Japan as a foreigner is hard as it is.
  - asutekku 5y ago
    Purcashing or renting? Because for me it was literally just going to a rental store and signing a stack of documents.
    - post_break 5y ago
      I guess it depends on the location, property, etc. It seems like a lot of foreigners need to jump through more hoops than citizens. More rent up front, higher signing gift to the land lord, etc.
      - ryan_lane 5y ago
        This hasn't been true in my experience. There's gaijin friendly housing that has higher rent, but usually no key fee, no deposit, and a month-to-month or yearly lease. It was very, very easy to get a gaijin apartment. You're only able to really rent other places if you have a long-term visa, because the standard lease term-length in Japan is 2 years. If your visa is less than 2 years, you don't qualify. If you do, then everything is the same as Japanese citizens. Most apartments have a deposit, a key fee (a bribe to the landlord), and a lease renewal fee (a bribe to the agent). Lease period will be 2 years. A lot of companies will pay these bribes for their employees, which I'm sure is one of the reasons they exist (and also one of the reasons gaijin apartments don't charge them).
- xvilka 5y ago
  Yes, I don't see a point of this program at all because in case of Japan there is double trouble of non-urban and overall population decline. Thus, logically, they should aim this kind of program specifically to foreigners, to attract foreign money and people themselves.
Borrible 5y ago
I would be cautious. In the Japanese construction industry, Keynes' general theory of paying people to dig holes is understood literally. https://robbreport.com/shelter/home-design/japanese-homes-are-ephemeral-facing-demolition-just-22-years-in-heres-why-1234608438/ https://robbreport.com/shelter/home-design/japanese-homes-ar...
cpitman 5y ago
There's a great little video log following someone doing exactly this, acquiring an akiya house and renovating it (https://www.youtube.com/channel/UCBQ3TEq5SrUuTJuMl1S_4ig https://www.youtube.com/channel/UCBQ3TEq5SrUuTJuMl1S_4ig). He starts from how they bought a house, to the state it was in when they started (spoilers, no one had ever emptied the fridge when the last occupant died), to the work done by a local carpenter and the work he did himself.
- belter 5y ago
  I second this. I have followed the series of videos and its really well done.
lazyjones 5y ago
Italy still has a similar programme, anyone remember the "$1 house" articles? https://hn.algolia.com/?dateRange=all&page=0&prefix=false&query=italy%20%241%20house&sort=byPopularity&type=story https://hn.algolia.com/?dateRange=all&page=0&prefix=false&qu... If there are no strings attached, which I doubt (in Italy it's the mafia and lack of infrastructure), that'd be a chance to pick up cheap urban land.
xrd 5y ago
When I lived in Japan I would visit friends of my host families and even up in Sapporo (a relatively new city of only ~200 years) I would see these "old" houses and be fascinated by them (maybe this was down south in Hokkaido in Hakodate, I don't recall). One time my host mother explained that some of those houses are designated at the second tier of "important cultural property" (the first tier is even more restrictive) which meant they could not do modern style improvements to them by order of the government. It was really fascinating to see these houses falling apart and the people that owned and lived in them being unable to repair them to preserve the cultural heritage of Japan. I shudder to think how my fellow Americans would react to such laws.
- ghaff 5y ago
  Older buildings in the US can absolutely come with a lot of restrictions especially related to changing exteriors. You're more likely to run into this in urban areas than rural though.
- retrac 5y ago
  Here in Ontario, Canada in a medium-sized city, the downtown core is littered with heritage properties. My friends own a home built around 1900 and they cannot alter the front in any significant way, and the interior woodwork of the front room is deemed heritage-signicant and has to be preserved as well. They got permission from the city to rebuild the front deck (a later addition anyway) as long as they literally just rebuilt it as-is. They knew that going in, and it is a beautiful majestic old building. I believe there are laws like that throughout Canada and the USA, though our town may be more aggressive than some places. It does sometimes lead to the kind of disrepair you speak of.
  - ethbr0 5y ago
    If the government / city specifies the architectural style, it should provide helping funds? I know this happens in many places, but it's insane to mandate this, but expect 100% of funding to come from the property owner. Maintaining a consistent / historical style is a benefit to the community, and so the community should help pay for its own good.
JoeAltmaier 5y ago
Numerous youtube videos on the trials and tribulations. Watch a few before even considering this rash move.
srvmshr 5y ago
Being a Japanese resident (PR) now, I did look up this option for a summer home in the woods (Akita, Aichi-ken etc). This is what I learnt, which this article fails to mention: * Akiya houses come with an agreement to reside. Not just be a summer home. Their goal is to repopulate the countryside. * You have to cultivate any farmland that comes with the deed. You cannot sell it without special permission. There is a whole lot of paperwork to deal with such situations. * Most old Akiya will have strong regulation not to change the frontage. It isn't permitted. Architecturally these have to be consistent. Building permits are very stringent. * Land tax is levied the day from purchase - not from the day of moving in. * Residents have to contribute to local development funds which take care of Matsuris etc. You like it or not, local government will knock on your door with a bill. * Connectivity is poor. Cell reception outside NTT can be spotty. Internet is even harder. * Language proficiency is a must. No one speaks English. Not even the local government officials. * House will need a significant amount of renovation. With the stringent restrictions - anywhere between 100 & 200 grand (depending on the disrepair) I eventually vetoed my SO's plan. For a little more (and lesser space obviously), we can live in Tokyo suburbs.
- andi999 5y ago
  200 grand USD or Yen? If USD then you shd really consider Tokyo suburbs.
  - srvmshr 5y ago
    200,000 USD. ¥200,000 is ~$2000. If it was that low, I will drop that money in without missing a beat.
- antisthenes 5y ago
  Honestly, all of this can be summed up as: "trying to have your cake and eat it too". Nothing more than stubborn/incompetent administration of a dying village refusing to let go of the ways of thinking and lifestyle that existed 50 years ago. That's not to say the lifestyle is bad or obsolete. It may exist again 50, or 100, or 1000 years in the future. But it doesn't exist now, and if you want to actually attract people there and not do pointless virtue signaling, you have to change these conditions. Most of them are terrible disincentives.
bambam24 5y ago
Click bait
codingdave 5y ago
It should be noted that if you are up for renovating an old home in a small town, there are no lack of cheap, abandoned homes in the USA either. Or, just buy land and build the home from the ground up. At the end of the day, your money and energy are going to go into the renovation or construction, not initial purchase prices.
- ozim 5y ago
  This reminds me of discussion I've been in some months ago on HN. My point was that "building more houses" is not cure for homelessness. Because people don't want to live where abandoned homes are - because there are no jobs, no amenities and probably none of family members or friends. Getting to hospital nowadays in the city might be hard, can't imagine how hard could it be if you are in some far away village. I was thinking about living in some remote area if I just could get 3G internet or starlink but then as I got middle age having pharmacy or a doctor close by gets more priority than getting cheap land/getting away from people. Building more flats in area where everyone wants to live leads to bad outcomes as well - just google Hong Kong flats. I would definitely would not like to live there as it looks like not much better than just being homeless. It all is really complex topic.
  - bullfightonmars 5y ago
    No one is talking about building houses in the middle of nowhere, where there are no jobs, and bo lack of supply.
franciscop 5y ago
Very clickbait-y title; it's more like "rural abandoned houses in need of repair [...]", def not the central Kyoto depicted in the header image.
peter_retief 5y ago
I would love to retire to the Japanese country and fix up an old house. It is probably not as idealic as in my minds eye but would love to hear some experiences people have had doing this.
LatteLazy 5y ago
If youre willing to live in a high crime area with no jobs and no kichen or bathroom, you can get a house for £1 in the uk. https://inews.co.uk/culture/television/the-1-pound-houses-britains-cheapest-street-channel-4-liverpool-webster-triangle-scheme-what-happened-305654 https://inews.co.uk/culture/television/the-1-pound-houses-br...
TheRealPomax 5y ago
Ah yes, "in Japan". Mind you, in very specific parts of Japan where there might be a very good reason for houses to cost nothing. We're talking about abandoned properties that you then have to pay all the "reclaim and rebuild" costs on, and you can't even legally DIY, you have to hire licensed craftsmen to fix it in the traditional style. And you're stuck with it for years and years, too. Not just "ownership": you have to live in it. In a place that everyone else is leaving, so instead of moving into a community, you're moving into progressive isolation and depression, while going bankrupt. Hey, did you know houses in the US are going for as little as $1? That's an even better deal than $500!
Ericson2314 5y ago
Japan is really good about land use, and thus speculative land ownership without development is more often a bad idea. This is a funny case where dealing with the externalities lowers the price, as the thing being sold becomes less attractive by other means. Good job, Japan.
- suction 5y ago
  I'd recommend you read "Dogs & Demons" by Alex Kerr, which is specifically about land use in modern Japan.
  - Ericson2314 5y ago
    It looks like one of its criticism is too much construction. 20 years ago, was an overbuilt shrinking countryside an issue yet?
    - suction 5y ago
      Yes, because the economic slump started in the early 90s and was in full swing in the early 2000s. The book is really worthwhile, not dry at all. But it's very disillusioning, I've had very severe reactions from "Japanophiles" when I recommended it to them.
      - Ericson2314 5y ago
        I'll take a look.
rcpt 5y ago
Yet three decades ago, thanks to insane fiscal policies that heavily incentivized land speculation, a few square km in Tokyo were worth as much as all of California. https://hbr.org/1990/05/power-from-the-ground-up-japans-land-bubble https://hbr.org/1990/05/power-from-the-ground-up-japans-land... To be honest 80s Japan doesn't seem too far off from current California tax law so maybe I'll be able to afford a house here in 30 years
dang 5y ago
Past related threads: Japan is trying to lure people into rural areas by selling $500 homes - https://news.ycombinator.com/item?id=27654817 https://news.ycombinator.com/item?id=27654817 - June 2021 (3 comments) Japan Is Giving Away 8M Abandoned Houses - https://news.ycombinator.com/item?id=18548742 https://news.ycombinator.com/item?id=18548742 - Nov 2018 (381 comments) Marginally related: Raze, rebuild, repeat: why Japan knocks down its houses after 30 years - https://news.ycombinator.com/item?id=15736734 https://news.ycombinator.com/item?id=15736734 - Nov 2017 (43 comments)
- suction 5y ago
  I don't think this influx of Japan-related posts on the HN front page is a positive thing. The overexposure of Japan in nerd circles is understandable and well-researched, but it feels like a cheapening of this forum and descend into Reddit territory.
  - dang 5y ago
    All true, but HN has always had those and I think it's within the normal fluctuations of the site.
carabiner 5y ago
In Italy they're going for 1 euro: https://www.cnn.com/travel/article/italy-one-euro-homes-castropignano-molise/index.html https://www.cnn.com/travel/article/italy-one-euro-homes-cast... Same deal as Japan; you have to pay to renovate them and live in the middle of nowhere.
bryanrasmussen 5y ago
https://www.washingtonpost.com/nation/interactive/2021/peoria-il-real-estate/ https://www.washingtonpost.com/nation/interactive/2021/peori... - Real estate investors from across the U.S. are buying homes in Peoria, Ill., sight unseen - Washington Post tldr: if a deal seems to good to be true ...
abruzzi 5y ago
This is not unheard of in the US as well. When you go into deteriorated urban neighborhoods, one of the reasons for the many vacant homes is that the accumulated property taxes on a particular home are far more that the value of the home. If you sell the home, the taxes go with it, so a new owner would have to pay those accumulated back taxes. In my state, after three years of unpaid property taxes, the property can be auctioned, but that assumes there is someone who is willing to pay for it, and then there is a period where the original owner can refund the buyer and take possession of property again. That makes it a long and fraught process to buy one of these auctioned properties. So instead, they negotiate with the property owner to have them donate the property in return for forgiveness of the back taxes. This happened with a number of neighborhoods in Philadelphia, when I lived there. After the city took possession of the property, they would then setup a neighborhood group to give or sell the properties to people or businesses that they thought would help "gentrify" the neighborhood. The people requesting properties would fill out an application detailing how they would use the property, and the neighborhood council would select "deserving" applications (I put that in scare quotes because the process would sometimes be corrupted by people favoring friends.) I knew someone on one of these councils, and considered applying for a home, but decided I wasn't that committed to living there, and a year later moved west.
BrandoElFollito 5y ago
You can get castles (_châteaux_) cheap in France. But then you realize that you have to renovate them according to the local architecture regulations, often with artisanal materials (the roof for instance). I know a couple friends from Germany who inherited a castle and did not refuse the inheritage when they could . They were desperate when they realized how expensive this is.

224 points by prostoalex 5y ago

With certain pre and post conditions.

These don't have "minor" loopholes to renovation or occupation. Typically these will require the use of licensed craftsmen who can restore the building if they are the older style, and almost all will require 5-10 year occupation agreements and/or agreements to productively farm the land it comes with. Further, there are strict restrictions on ownership by foreigners, and most of the akiya bank properties aren't eligible last I looked. Those that are will have little to no internet, you will be an hour or more away from a decent sized city, and you'd better be fluent in Japanese because noone in these communities will be fluent in anything else. Even signage in many of these places is lacking the English foreigners that have traveled there will be used to. For reference I've lived in Japan, have a Japanese spouse, and my children are dual citizens. We have investigated this going on 15 years now and it's just not something you'd want to take on, if you were able to, most of the time.

jdhn 5y ago
I'm curious as to what the rules on foreign ownership are. Is it an outright ban, or can it be circumnavigated by having a Japanese lawyer draw up some sort of agreement where they are the owner, but the foreigner pays them $X a month, or something like that?
- rootsudo 5y ago
  There are anti-dummy laws in Japan.
- CobaltFire 5y ago
  These require residence at the property, and if you can't get a residency permit (rather difficult for the amount of time needed by this agreement) then it's a defacto no foreigners rule for these homes.
- henearkr 5y ago
  Some estate agencies, who don't want to sell estate to a foreigner but would not openly say it, just let some other Japanese customer (who appeared suddenly) take the precedence and buy instead of you. Source: unfortunately I can relate...
  - jowsie 5y ago
    It doesn't even have to be that underhanded. Many rental agencies will ask house owners if they want foreigners or not, it's a simple tick box.
    - henearkr 5y ago
      Yes but in this case it's to sell it not to rent it. I can (almost) understand that you don't want foreigners in the apartment that you own, but in this case they don't even want to receive money -- the same amount -- from foreign buyers, and in this case it's clearly because they want to protect their village from "being invaded". Yes pretty ridiculous, but unfortunately very common.
rootsudo 5y ago
There is no strict laws on foreign ownership, most of the time this falls under the idea that people/foreigners think owning land gives you a right to reside in the country. It does not. Then not knowing procedures or having a Hanko is extremely detrimental to doing any paperwork in Japan. Internet is not an issue, NTT will give you internet within 3 months, and there is always unlimited 4g/5g subscriptions. Being in the Inaka is an experience itself, and you need to know the language. I agree.
- CobaltFire 5y ago
  Given that these require residency, there is a defacto restriction on ownership for those without the means to get a long term visa or residency permit. I was not aware of NTT getting you internet; thanks for that info! I seem to recall the wireless unlimited plans being rather expensive, but it's been a while. Yes, Japanese government is it's own special issue. Hanko being an always fun issue for people! I absolutely LOVE being in the Inaka. When my in-laws shut down their business they moved a little ways out, and we regularly visit their family friends in the mountains at their Onsen, which is a solid 40 minutes from anyone else at all.
  - rootsudo 5y ago
    Yep, as long as you have utilities, then you can get NTT Fiber. It is much easier if it has a pre-existing phone line active, or sometime per-existing. Considering these properties were most likely occupied during the 1970's-1990's, a phone line most likely is present so it is on the "books" as serviceable. If not, you get the phone line service first if you must. Alternatively you can also look in TOWNPAGE for the address and see if it shows up.
  - fomine3 5y ago
    NTT Flets coverage is really good since they'll replace PSTN by FTTH. Wireless unlimited (*with speed limit for heavy users) internet is now affordable thanks to 5G plan.
- derefr 5y ago
  Parent comment said "restrictions" on ownership by foreigners, not "laws". The "restrictions" are semi-informal, barriers put in place as needed, in the form of a bunch of extra costly-to-satisfy red tape that isn't usually insisted upon, but which becomes a "must have" if you're someone the local Japanese-nationalist NIMBYs don't want living there. (I would note that white people aren't likely to be hardest-hit by these "restrictions." Consider which ethnic groups an elderly Japanese person would remember directly fighting against in a previous war. Those same elderly Japanese people now form the inaka's governments, so AFAICT those same ethnic groups are most resisted.)
ashtonkem 5y ago
Anytime something seems too good to be true, it usually is.
aero-glide2 5y ago
Shouldn't be a problem with Starlink, $100/month for 50-100Mbps.
- marcinzm 5y ago
  You mean except for the part where isn't not available in Japan right now.
  - ctdonath 5y ago
    By now before Starlink becomes available and a flood of people jump on the opportunity - happening soon.
  - aero-glide2 5y ago
    Arriving 2022 for Japan.
dpedu 5y ago
How much have things changed in these 15 years? Are prices and regulation rising or falling?
- CobaltFire 5y ago
  It's been pretty static, honestly.
tvanantwerp 5y ago
Reminds me of an economics joke: Two economists are walking down the street. One spots a $20 bill on the sidewalk. He bends to pick it up, but his companion stops him. "If there really were free money in the street," the companion says, "then somebody else would've picked it up before now."
- dathinab 5y ago
  I don't like the joke, tbh. Because: - In somewhat professional bussiness areas there is in general no free mony, but not because no one picked it up but because no one would place the money down/accidentally let it fall down without noticing. - But in specific contexts there is "free money" it's just that "in general" this context doesn't apply to you, e.g. there if you are Japanese person who wants to spend the next decade farming in the country side this might be a awesome deal for you. - But the "mony on the ground" analogy represents a "general but rare" situation, not a "very specific context", but you can find money on the ground and it's always worth picking it up, BUT you should check if there is a string attached to it (in that case literally ;=)). So for me the joke sounds like what someone would try to argue in self defense when doing a bad deal to reason that all is fine because they are not "blind sighted economists". In my environment (or more precise that of my dad) I have seen people going in that direction of "picking up free money" and making exactly this kind of jokes only to lose all the money they had maneuvering themself into a situation of basically falling into poverty not long before they normally could have gone into a nice reasonable wealthy retirement...
  - tacostakohashi 5y ago
    The humor in the joke comes from the mismatch between economic theory and reality.
    - alentist 5y ago
      Elaborate, because it sounds like a strawman.
      - 5y ago
jimmaswell 5y ago
We could do with some strict rules on foreign ownership here in the US. Seems questionable when all the housing in a neighborhood is owned by Chinese investment firms.
- Hnrobert42 5y ago
  Probably the occupancy requirement would take care of the issue better.
  - hellbannedguy 5y ago
    In my neighborhood, many are occupied by a non-english speaking person, or small family. (I'm not saying anything racist. I just know a few individuals whom shop at Safeway whom live in million plus homes that don't speak English. I feel we need more that a occupancy requirement. We need some hard requirements, a long with not allowing hedge funds to buy homes. This goes for American corporations too.)
    - rfrey 5y ago
      Some hard requirements that go beyond occupancy rules and forbidding hedge funds from buying houses. What are your suggestions?
- csomar 5y ago
  So only US persons and companies can buy in the US right? That means Chinese investment firms can still buy but dude who is on some long-term visa can't. Either way, real estate should be a free market. In the same vein you can buy any real estate you like, a seller should be able to sell to any entity that's giving him the better price.
  - jimmaswell 5y ago
    I think real estate has proven to be somewhat of a market failure when so much is taken up by landlords and investment firms driving up prices without providing much or any value. The pandemic has only made this worse as big firms ride out the storms and buy even more land on the cheap to rent back out at an obscene profit. My parents used to pay $1000 a month in rent for a property that I know the taxes on amounted to maybe $3000 a year, and the landlord rarely did anything else than pay that tax. Sent a bargain basement repair guy out a few times to fix the heater maybe. That's 300% profit for nothing, pure rent seeking behavior. That's not good for society. More needs to be done to encourage individual home ownership and discourage people having no choice but to send a third to half of their income into a black hole every month.
Karrot_Kream 5y ago
I know this is off-topic and not your fault in any way, but I'm tired of the "spousal perspective" on this site when it comes to East Asia. Somehow most of the East Asian perspectives we get here are partners of East Asian folks, despite East Asia having lots and lots of engineers.
- math-dev 5y ago
  I understand your perspective. However the solution is for those native to East Asia to post, not non natives to post less. I agree that more viewpoints is better, just wanted to point that
- CobaltFire 5y ago
  Does that make my perspective as someone who lived there invalid? In this case the "spousal perspective" is that we aren't subject to many of these barriers and we STILL aren't purchasing one due to the remaining barriers and issues.
  - Karrot_Kream 5y ago
    It most definitely does not, and as I said it's not your fault in any way. I would just appreciate more non-spousal perspectives, especially when it comes to things like Japanese nationalism where it helps to have a Japanese perspective.
    - hattori31 5y ago
      Speak Japanese then.
      - Karrot_Kream 5y ago
        もう分かりますけど？
- thaumasiotes 5y ago
  You're going to have to take what you can get on an English-speaking forum. Move to a Japanese forum and you can find all the Japanese perspectives you want.
deleted 5y ago
[deleted]
simonebrunozzi 5y ago
Thanks. Out of curiosity, do you still live in Japan? Or, if not, what do you miss it the most?
- CobaltFire 5y ago
  I moved back last year in the middle of the pandemic. Honestly, life in Japan is much more relaxed for me. I’m not as competitive, not as wrapped up in being successful. That’s a very individual thing, but that disconnect was my favorite thing. I know I was an outsider and I was fine with that.
  - simonebrunozzi 5y ago
    Thanks. Were you in Tokyo, or elsewhere? I spent 3 months in Kyoto in 2020 (just at the beginning of the pandemic) and really liked it there. Would love to go back for a few more months in 2022, and possibly study some basic Japanese (I only learned some Hiragana so far)
ddoran 5y ago
Correct me if I'm wrong, but Japan does not allow dual citizenship ... rather your children are young enough that they have not had to declare their ultimate citizenship? My wife and I are naturalized US citizens. My country of origin allows me to retain dual citizenship, as does the US, but my wife was obliged to renounce her Japanese citizenship when she became a US citizen. It's annoying and unfortunate that she had to do so.
- CobaltFire 5y ago
  Japan does not consider someone an adult capable of making that decision until they are 20. Further, they won't force the decision (nor will the US) even after that point. This leads to interesting issues. One such individual was in training with me but had to sit and wait 6 months until he turned 20 to renounce his Japanese citizenship so that he could obtain a clearance. This was 20 years ago, so things may have changed.
hintymad 5y ago
A side topic: I also find English translation of Japanese locations and names often loses much meaning. It's almost unbearable to live in Japan and uses only English translation. For instance, Miyamasou does not mean a thing for English-speaking foreigners, but the corresponding Kanji or Chinese translation, 美山庄，means a ton.

Finnucane 5y ago

Japan isn't alone in having a problem with rural depopulation. Much of Europe as well. These cheap houses are not always going to be move-in ready, and there may be limitations on foreign ownership. So due diligence is in order.

nicbou 5y ago
The small roads of Poland and the Czech Republic are flanked by abandoned houses. Parts of France and Germany are the same. Most jobs are in the city, as are schools and interesting places. Village life isn't for everyone. I'm considering those all the time when I drive by them, but the price likely isn't low enough to get me to live there, away from everything I enjoy.
- Finnucane 5y ago
  There are places in the US where you can buy houses for a tiny fraction of what a condo would cost in a major city, but the problem are the same--you will have to invest in rehab, the local economy is probably not good, etc. On the other hand, if you can still do remote work and get money that way, you could make a go of it. But it wouldn't be easy.
  - ghaff 5y ago
    And broadband Internet may well be an issue. 5G may help in some cases although my dad's house which doesn't have broadband also has almost non-existent cellular service. (There's a hot spot but it's limited in both speed and amount of data. Basically no streaming.) Starlink should help in this regard. You don't really have good alternatives to landline broadband today in the US generally.
    - Sebb767 5y ago
      In theory, you could also invest into laying a local fiber cable. It's not cheap (think 4 to 5 digits), but depending on the location, it might be worth it.

Wesxdz 5y ago

Long term I see housing collapsing and going negative maybe around 2030 (ie countries like Japan/Spain/South Korea) paying foreigners to move into akiya, it's a compelling case for young remote workers in the US who have been priced out of the real estate market in nice cities en masse to abandon their landlords in favor of something like this.

ethbr0 5y ago
The anti-foreign NIMBY reaction is going to be curious. From a national, demographic, and budget perspective, this has to happen for many countries (quickly, at large scale). From a local, cultural perspective, I see people being very resistant (relatively speaking wealthy, culturally-ignorant foreigners moving in in large numbers?). In democracies... that's going to be an interesting mix. Especially when current residents are the primary voters. I expect we'll see more successful countries form political alliances between immigrants and parties pushing for more skilled worker immigration.
Ekaros 5y ago
I think it will stay multimodal market. Some places will continue going up, that is the most desirable and most supply limited cities. Some will follow inflation, that is smaller well planned towns that can support themselves, but aren't in massive growth. And then in some places will or already have negative value. Like some "HOA" in Finland being unable to get loans for basic renovation and having to demolish house. With owners being left with debt...

mast22 5y ago

Same goes for Sicilian real estate. Houses require a major restoration, but they cost just 1 euro.

haunter 5y ago

What about the visa/residency though? Isn't Japan ultra strict about that?

post_break 5y ago
Correct, Gaijin would need not apply. Getting a regular apartment in Japan as a foreigner is hard as it is.
- asutekku 5y ago
  Purcashing or renting? Because for me it was literally just going to a rental store and signing a stack of documents.
  - post_break 5y ago
    I guess it depends on the location, property, etc. It seems like a lot of foreigners need to jump through more hoops than citizens. More rent up front, higher signing gift to the land lord, etc.
    - ryan_lane 5y ago
      This hasn't been true in my experience. There's gaijin friendly housing that has higher rent, but usually no key fee, no deposit, and a month-to-month or yearly lease. It was very, very easy to get a gaijin apartment. You're only able to really rent other places if you have a long-term visa, because the standard lease term-length in Japan is 2 years. If your visa is less than 2 years, you don't qualify. If you do, then everything is the same as Japanese citizens. Most apartments have a deposit, a key fee (a bribe to the landlord), and a lease renewal fee (a bribe to the agent). Lease period will be 2 years. A lot of companies will pay these bribes for their employees, which I'm sure is one of the reasons they exist (and also one of the reasons gaijin apartments don't charge them).
xvilka 5y ago
Yes, I don't see a point of this program at all because in case of Japan there is double trouble of non-urban and overall population decline. Thus, logically, they should aim this kind of program specifically to foreigners, to attract foreign money and people themselves.

Borrible 5y ago

I would be cautious. In the Japanese construction industry, Keynes' general theory of paying people to dig holes is understood literally. https://robbreport.com/shelter/home-design/japanese-homes-are-ephemeral-facing-demolition-just-22-years-in-heres-why-1234608438/ https://robbreport.com/shelter/home-design/japanese-homes-ar...

cpitman 5y ago

There's a great little video log following someone doing exactly this, acquiring an akiya house and renovating it (https://www.youtube.com/channel/UCBQ3TEq5SrUuTJuMl1S_4ig https://www.youtube.com/channel/UCBQ3TEq5SrUuTJuMl1S_4ig). He starts from how they bought a house, to the state it was in when they started (spoilers, no one had ever emptied the fridge when the last occupant died), to the work done by a local carpenter and the work he did himself.

belter 5y ago
I second this. I have followed the series of videos and its really well done.

lazyjones 5y ago

Italy still has a similar programme, anyone remember the "$1 house" articles? https://hn.algolia.com/?dateRange=all&page=0&prefix=false&query=italy%20%241%20house&sort=byPopularity&type=story https://hn.algolia.com/?dateRange=all&page=0&prefix=false&qu... If there are no strings attached, which I doubt (in Italy it's the mafia and lack of infrastructure), that'd be a chance to pick up cheap urban land.

xrd 5y ago

When I lived in Japan I would visit friends of my host families and even up in Sapporo (a relatively new city of only ~200 years) I would see these "old" houses and be fascinated by them (maybe this was down south in Hokkaido in Hakodate, I don't recall). One time my host mother explained that some of those houses are designated at the second tier of "important cultural property" (the first tier is even more restrictive) which meant they could not do modern style improvements to them by order of the government. It was really fascinating to see these houses falling apart and the people that owned and lived in them being unable to repair them to preserve the cultural heritage of Japan. I shudder to think how my fellow Americans would react to such laws.

ghaff 5y ago
Older buildings in the US can absolutely come with a lot of restrictions especially related to changing exteriors. You're more likely to run into this in urban areas than rural though.
retrac 5y ago
Here in Ontario, Canada in a medium-sized city, the downtown core is littered with heritage properties. My friends own a home built around 1900 and they cannot alter the front in any significant way, and the interior woodwork of the front room is deemed heritage-signicant and has to be preserved as well. They got permission from the city to rebuild the front deck (a later addition anyway) as long as they literally just rebuilt it as-is. They knew that going in, and it is a beautiful majestic old building. I believe there are laws like that throughout Canada and the USA, though our town may be more aggressive than some places. It does sometimes lead to the kind of disrepair you speak of.
- ethbr0 5y ago
  If the government / city specifies the architectural style, it should provide helping funds? I know this happens in many places, but it's insane to mandate this, but expect 100% of funding to come from the property owner. Maintaining a consistent / historical style is a benefit to the community, and so the community should help pay for its own good.

JoeAltmaier 5y ago

Numerous youtube videos on the trials and tribulations. Watch a few before even considering this rash move.

srvmshr 5y ago

Being a Japanese resident (PR) now, I did look up this option for a summer home in the woods (Akita, Aichi-ken etc). This is what I learnt, which this article fails to mention: * Akiya houses come with an agreement to reside. Not just be a summer home. Their goal is to repopulate the countryside. * You have to cultivate any farmland that comes with the deed. You cannot sell it without special permission. There is a whole lot of paperwork to deal with such situations. * Most old Akiya will have strong regulation not to change the frontage. It isn't permitted. Architecturally these have to be consistent. Building permits are very stringent. * Land tax is levied the day from purchase - not from the day of moving in. * Residents have to contribute to local development funds which take care of Matsuris etc. You like it or not, local government will knock on your door with a bill. * Connectivity is poor. Cell reception outside NTT can be spotty. Internet is even harder. * Language proficiency is a must. No one speaks English. Not even the local government officials. * House will need a significant amount of renovation. With the stringent restrictions - anywhere between 100 & 200 grand (depending on the disrepair) I eventually vetoed my SO's plan. For a little more (and lesser space obviously), we can live in Tokyo suburbs.

andi999 5y ago
200 grand USD or Yen? If USD then you shd really consider Tokyo suburbs.
- srvmshr 5y ago
  200,000 USD. ¥200,000 is ~$2000. If it was that low, I will drop that money in without missing a beat.
antisthenes 5y ago
Honestly, all of this can be summed up as: "trying to have your cake and eat it too". Nothing more than stubborn/incompetent administration of a dying village refusing to let go of the ways of thinking and lifestyle that existed 50 years ago. That's not to say the lifestyle is bad or obsolete. It may exist again 50, or 100, or 1000 years in the future. But it doesn't exist now, and if you want to actually attract people there and not do pointless virtue signaling, you have to change these conditions. Most of them are terrible disincentives.

bambam24 5y ago

Click bait

codingdave 5y ago

It should be noted that if you are up for renovating an old home in a small town, there are no lack of cheap, abandoned homes in the USA either. Or, just buy land and build the home from the ground up. At the end of the day, your money and energy are going to go into the renovation or construction, not initial purchase prices.

ozim 5y ago
This reminds me of discussion I've been in some months ago on HN. My point was that "building more houses" is not cure for homelessness. Because people don't want to live where abandoned homes are - because there are no jobs, no amenities and probably none of family members or friends. Getting to hospital nowadays in the city might be hard, can't imagine how hard could it be if you are in some far away village. I was thinking about living in some remote area if I just could get 3G internet or starlink but then as I got middle age having pharmacy or a doctor close by gets more priority than getting cheap land/getting away from people. Building more flats in area where everyone wants to live leads to bad outcomes as well - just google Hong Kong flats. I would definitely would not like to live there as it looks like not much better than just being homeless. It all is really complex topic.
- bullfightonmars 5y ago
  No one is talking about building houses in the middle of nowhere, where there are no jobs, and bo lack of supply.

franciscop 5y ago

Very clickbait-y title; it's more like "rural abandoned houses in need of repair [...]", def not the central Kyoto depicted in the header image.

peter_retief 5y ago

I would love to retire to the Japanese country and fix up an old house. It is probably not as idealic as in my minds eye but would love to hear some experiences people have had doing this.

LatteLazy 5y ago

If youre willing to live in a high crime area with no jobs and no kichen or bathroom, you can get a house for £1 in the uk. https://inews.co.uk/culture/television/the-1-pound-houses-britains-cheapest-street-channel-4-liverpool-webster-triangle-scheme-what-happened-305654 https://inews.co.uk/culture/television/the-1-pound-houses-br...

TheRealPomax 5y ago

Ah yes, "in Japan". Mind you, in very specific parts of Japan where there might be a very good reason for houses to cost nothing. We're talking about abandoned properties that you then have to pay all the "reclaim and rebuild" costs on, and you can't even legally DIY, you have to hire licensed craftsmen to fix it in the traditional style. And you're stuck with it for years and years, too. Not just "ownership": you have to live in it. In a place that everyone else is leaving, so instead of moving into a community, you're moving into progressive isolation and depression, while going bankrupt. Hey, did you know houses in the US are going for as little as $1? That's an even better deal than $500!

Ericson2314 5y ago

Japan is really good about land use, and thus speculative land ownership without development is more often a bad idea. This is a funny case where dealing with the externalities lowers the price, as the thing being sold becomes less attractive by other means. Good job, Japan.

suction 5y ago
I'd recommend you read "Dogs & Demons" by Alex Kerr, which is specifically about land use in modern Japan.
- Ericson2314 5y ago
  It looks like one of its criticism is too much construction. 20 years ago, was an overbuilt shrinking countryside an issue yet?
  - suction 5y ago
    Yes, because the economic slump started in the early 90s and was in full swing in the early 2000s. The book is really worthwhile, not dry at all. But it's very disillusioning, I've had very severe reactions from "Japanophiles" when I recommended it to them.
    - Ericson2314 5y ago
      I'll take a look.

rcpt 5y ago

Yet three decades ago, thanks to insane fiscal policies that heavily incentivized land speculation, a few square km in Tokyo were worth as much as all of California. https://hbr.org/1990/05/power-from-the-ground-up-japans-land-bubble https://hbr.org/1990/05/power-from-the-ground-up-japans-land... To be honest 80s Japan doesn't seem too far off from current California tax law so maybe I'll be able to afford a house here in 30 years

dang 5y ago

Past related threads: Japan is trying to lure people into rural areas by selling $500 homes - https://news.ycombinator.com/item?id=27654817 https://news.ycombinator.com/item?id=27654817 - June 2021 (3 comments) Japan Is Giving Away 8M Abandoned Houses - https://news.ycombinator.com/item?id=18548742 https://news.ycombinator.com/item?id=18548742 - Nov 2018 (381 comments) Marginally related: Raze, rebuild, repeat: why Japan knocks down its houses after 30 years - https://news.ycombinator.com/item?id=15736734 https://news.ycombinator.com/item?id=15736734 - Nov 2017 (43 comments)

suction 5y ago
I don't think this influx of Japan-related posts on the HN front page is a positive thing. The overexposure of Japan in nerd circles is understandable and well-researched, but it feels like a cheapening of this forum and descend into Reddit territory.
- dang 5y ago
  All true, but HN has always had those and I think it's within the normal fluctuations of the site.

carabiner 5y ago

In Italy they're going for 1 euro: https://www.cnn.com/travel/article/italy-one-euro-homes-castropignano-molise/index.html https://www.cnn.com/travel/article/italy-one-euro-homes-cast... Same deal as Japan; you have to pay to renovate them and live in the middle of nowhere.

bryanrasmussen 5y ago

https://www.washingtonpost.com/nation/interactive/2021/peoria-il-real-estate/ https://www.washingtonpost.com/nation/interactive/2021/peori... - Real estate investors from across the U.S. are buying homes in Peoria, Ill., sight unseen - Washington Post tldr: if a deal seems to good to be true ...

abruzzi 5y ago

This is not unheard of in the US as well. When you go into deteriorated urban neighborhoods, one of the reasons for the many vacant homes is that the accumulated property taxes on a particular home are far more that the value of the home. If you sell the home, the taxes go with it, so a new owner would have to pay those accumulated back taxes. In my state, after three years of unpaid property taxes, the property can be auctioned, but that assumes there is someone who is willing to pay for it, and then there is a period where the original owner can refund the buyer and take possession of property again. That makes it a long and fraught process to buy one of these auctioned properties. So instead, they negotiate with the property owner to have them donate the property in return for forgiveness of the back taxes. This happened with a number of neighborhoods in Philadelphia, when I lived there. After the city took possession of the property, they would then setup a neighborhood group to give or sell the properties to people or businesses that they thought would help "gentrify" the neighborhood. The people requesting properties would fill out an application detailing how they would use the property, and the neighborhood council would select "deserving" applications (I put that in scare quotes because the process would sometimes be corrupted by people favoring friends.) I knew someone on one of these councils, and considered applying for a home, but decided I wasn't that committed to living there, and a year later moved west.

BrandoElFollito 5y ago

You can get castles (_châteaux_) cheap in France. But then you realize that you have to renovate them according to the local architecture regulations, often with artisanal materials (the roof for instance). I know a couple friends from Germany who inherited a castle and did not refuse the inheritage when they could . They were desperate when they realized how expensive this is.