Free Houses in Japan, by Anton Wormann

As a part of our series on real estate books in Japan, we are excited to offer our review of Free Houses in Japan: The True Story of How I Make Money DIY Renovating Abandoned Homes, by Anton Wormann.

“Free houses” in Japan? “How to make money” on real estate? For some readers, the buzzwords in the book’s title may bring to mind images of generic, “get rich quick” books, and other examples of the “get something for nothing” genre.

Having read it end-to-end, however, we predict you will be surprised at the pure spirit and enthusiasm between the covers. This quote from the author is a more accurate example of what to expect:

I’ll point out that the words ‘passive income’ haven’t been mentioned one single time in this book. Renovating houses is a rewarding, but not ‘passive’ endeavor.
— Anton Wormann

In the space of 334 pages, Anton Wormann takes the topic of investing in real estate, and tells a deeply personal story about his process of (quite literally) making a home in Japan.

There is a special feeling about Japan that’s hard to put into words. It’s like being a kid who doesn’t want to leave a fun party and asks to stay a bit longer. That’s how I feel about Japan – I just want to stay here and keep enjoying every moment.

What starts with a teaser about free real estate turns out to be not only a deep dive into abandoned property in Japan, but also a memoir for a foreigner on his private journey to become a real estate entrepreneur, and a global champion of the potential of akiyas.

We began our review of Free Houses in Japan with a very careful read; in fact, we took 42 pages of notes. Below we will share an overview of Anton’s first book on the topic, and we’ll try to tease you with quotes, and to inspire you to buy the book and read it for yourself.

Wormann’s Free Houses in Japan Book

Free Houses in Japan is divided into five sections, each focused on different aspects of Anton’s perspective on akiya in Japan: Preparing, Acquiring, Renovating, Monetizing, and then a section for Resources. The 19 chapters in the book focus on topics including: “Learning the Market,” “Planning Your Trip,” “Hunting for a House,” “Understanding Japanese Construction,” “Operating an Airbnb,” and many more.

The production value of the book is very high quality, a completely professional effort. And the illustrations – by England’s Megan Douglas – deserve their own commendation; they are excellent, and add artistic value that pairs well with Anton’s voice.

Who is Anton Wormann?

Free Houses in Japan is so personal, so genuine, that it somehow manages to make real estate in Japan an emotional topic; saying so is to give tribute to the unique glow of Anton Wormann as a writer, to his personality (so freely given in all of his content), and to his spirit, as enlivened by his time in Japan.

Did you know that Anton was a Gucci model? It is true. (To the best of our knowledge,) Anton is still a fashion model; and in the book, he tells stories of actively working as a model as he developed his expertise with akiya real estate. And while he is certainly a good-looking man, there are other aspects of his personality that are more salient to this story:

Growing up in Alvsjo, a southern suburb of Stockholm, my family lived in a fixer-upper built in 1909. To save money my Dad did the renovations himself and he worked on the house from when I was little until I was a teenager… Renovating is in my blood.

If you can imagine a fashion model running down a back-alley in Tokyo, trying to get bags of construction trash into an undersized truck, you’re beginning to see that Wormann is indeed a kind of renaissance man, a remarkably unique combination of interests and behaviors.

What are Akiya in Japan?

Akiya – Simply put, akiya means ’empty house.’

From there, Anton goes on to provide a very enthusiastic, but sober treatment of the process of investing in akiya in Japan.

They are not really free, as many claim, but they are very, very inexpensive.

This means that the ‘free house’ you got when buying the land isn’t really free. In reality it has a negative value. The overall cost of buying the property and removing the old house can be more than what the land and house worth together.

They are not free. The land, at least, has value, and when the owner can be found, there is a price to be paid. But because the structures tend to be old and in poor repair, they are sometimes undervalued. While the term akiya may have originally meant “empty house,” it has come to mean “low priced, distressed real estate” – and many akiya (but not all) have low purchase prices.

From my perspective, it’s important to note that all akiyas, abandon houses, I’ve encountered in Tokyo and it’s surroundings have already reached a tax evaluation of almost zero. Despite this low value, it’s essential to remember what these properties are still houses, with the potential to be something more.

This is where Anton’s story takes off:

He genuinely loves renewal and renovation. And his unique attitude, experience, and work ethic, have made him famous for turning otherwise undesirable property into very attractive, comfortable accommodations – and at a profit; Anton rents these remodeled akiya to tourists via Airbnb.

It may sound unlikely that a Swedish Gucci model would become an example of a do-it-yourself real estate renovator of abandoned property in Japan, but that is in fact the foundation of Anton’s book.

Akiya Buyers in Hokkaido

While the title is more generally about Japan, Anton’s examples in Free Houses are based on his experience in Tokyo.

As experienced real estate consultants in Hokkaido, we can easily confirm the akiya phenomenon here as well – both that it exists (there are many akiya in Hokkaido), and that akiya requests are a popular topic with real estate buyers in Hokkaido.

Here are some real examples of akiya buyers that we have helped here at Find Hokkaido Agents:

I have seen a couple of akiyas in Tokyo, and would like to get an understanding of the real estate market around Sapporo and Otaru.
— Find Hokkaido Agents client

We would like to be matched with a realtor that we can work with for the next few years in the region to buy akiya and other properties for renovations.
— Find Hokkaido Agents client

Need assistance with transaction. Purchasing an akiya in Otaru, please advise if you provide this service.
— Find Hokkaido Agents client

As our company Find Hokkaido Agents brings us into contact with so many foreigners, we can see that the desire for akiya property in Japan may be even more common with foreign buyers than with the local Japanese.

The Japanese Preference for New

One reason why foreigners may have jumped on the concept of akiya is that while everyone appreciates a “good deal,” the Japanese have a preference for new things, particularly when it comes to construction.

In Japan, the perspective on home value is quite different from many other countries. While older homes often hold historical and athletic value in other places, in Japan, newly-built homes are highly preferred.

While the Japanese are careful to preserve many historic sites (such as temples and shrines), in residential real estate, an appreciation for preserving traditional construction is uncommon.

The new owner or developer would have taken two days to tear the house down, and a week later a new concrete foundation would have been on the ground. Next, a brand new three-story house.

In a culture that appreciates modern design and new construction, these old, dilapidated houses are seen as especially low-value. With very low interest from Japanese buyers, these unloved properties accumulate, often at low purchase prices. Then, as popular media recasts these abandoned properties as “free houses,” foreigners are inspired to take that sense of historical preservation and create their own stories in Japan.

In some ways, inspiring foreigners to imagine potential in these older properties is a good thing.

For me, even after five years of living in Japan and continually seeing things more and more with Japanese eyes, I still prefer the older buildings. They have soul.

It is true that the majority of akiya transactions are between Japanese buyers and sellers. But in terms of the enthusiasm, the mismatch between the attitudes about real estate in Japan and the conditions of the akiya may create outsized interest from foreign buyers.

Because foreigners can appreciate old things – and maybe even romanticize old things in Japan – there is a hunger for information on how to get started buying and rebuilding akiya; Anton Wormann is at the center of that phenomenon.

Japanese Real Estate Agents and Akiya

Buying property in Hokkaido as a foreigner is not overly difficult, but it is certainly more complicated than buying property in your home country. Additional challenges associated with the “special needs” of akiya add more complexity; buyers often need advice and help from local Japanese real estate agents to buy akiya property.

Anton does a commendable job of showcasing the value of real estate agents in the buying process in Japan:

Brokers, despite their cost, can be your secret allies. They possess hidden strategies that can help you build crucial relationships and navigate the complex world of Japanese real estate. Investing in their services can pay off in the long run, and they will guide you through the entire process, covering everything from hidden fees and taxes.

In the pages of Anton’s book, he references the value of local Japanese real estate agents again and again. Including one deal in particular, where an agent played a personal role in bringing that deal together. It is a great story, and you can read the book to hear all the details.

Low Prices Mean Low Commissions for Agents

Real estate agents can certainly open doors for foreign akiya investors in Japan. However, because akiya transactions are often more difficult than transactions for more well-maintained property, and the prices are low, many agents avoid akiya deals entirely. When inexperienced foreign buyers focus on very low-priced property in Japan, and/or try to cut out agent commissions, the local real estate agents in Japan have no incentive to help make these deals happen.

Many good real estate agents (called brokers in Japan) don’t want to deal with selling them because the commissions are so low on such a low-price property. The brokers simply don’t put in much effort to sell the home.

Here Anton is pointing to sellers’ agents in Japan, saying they often don’t want to bother listing those properties. And while that is true of the selling-side, it is also true for the agents that represent the buyers. Foreigners that want to buy akiya in Japan need as much or more help buying those properties, and the added difficulties and low commissions make agents hesitant to get involved.

The truth is that, on average, the foreign buyers themselves are more difficult, and are less likely to complete a transaction, than an equivalent local buyer. Many Japanese agents are reluctant to spend time on buyers that do not currently live in Japan. They are even less likely to want to get involved with foreigners targeting akiya property, with problems that may present difficulty during the sale.

When it comes to purchasing a house, one of the most important relationships you’ll have is with your broker. In short: you will need a broker. Get a local one, show them respect, and ask them questions.

Foreign buyers will be more successful with akiya properties in Japan when they can identify an experienced local agent that can guide them through the transaction.

Suggested Budget for Akiya

It is not always the age of the property (old versus new) that is the problem. Often an akiya deal can be a good opportunity for a buyer and their agent, as long as the akiya meets a minimum purchase price.

Remember when it comes to these cheaper, older houses and apartments, many brokers won’t give their best, because their commission is lower compared to the transaction of a new-built house and they will just want a quick deal.

In our experience, akiya above 3,000,000 JPY are often worth the agents’ time. But when a foreigner wants help with a 400,000 – 1,000,000 JPY property, agents are almost always disinterested. While akiya present persistent challenges to owners, buyers, and agents, when the buyer wants property above a certain minimum budget, these challenges can often be overcome.

Online Property Listings for Akiya in Japan

In our review of the book Real Estate Transactions in Japan, we quote the authors as saying, “the usual process is to first search for an interesting property on a portal site, and then contact the real estate agent handling that property.” That is what we see with many of our clients; including for some of the requests we see for akiya properties they have found listed online.

I’m currently in Sapporo wanting to buy a Akiya. I’m interested in a few listed online but have no way of communicating.
— A Find Hokkaido Agent client

Anton has several interesting comments about online listings for akiya in Japan:

It is essential to understand that in Japan most abandoned houses are not available for sale on traditional online platforms. This is where working with a local broker becomes invaluable.

Because akiya are relatively undesirable with the local Japanese, and because both the purchase price and the commissions for the sellers’ agents are low, akiya are less likely to be listed on the Japanese real estate listing websites.

Akiya Banks in Japan

As you read through Anton’s book, you will also learn about the concept of “akiya banks” – or specialized listings for akiya for sale in Japan. While that sounds like a logical, efficient solution, the same problems apply – the real estate community lacks strong incentives to do the work of bringing these troubled properties online.

Akiya banks often include listings from the sellers themselves, and are less professional and complete, and less likely to happen at all.

Foreign media often highlights the akiya banks and encourages people to use them. In my opinion, the foreign media have this wrong. While you should be aware of akiya banks, as they are one place to look for properties, most of the akiya are not listed in the banks. I believe the methods I’ve shared are much more effective than spending the time searching through the akiya banks.

In terms of finding akiya, Anton again stresses the role of using a local agent to find property, including off-market properties in Japan that are not otherwise publicly available.

While traditional, higher-priced property are easily found online, for akiya, Anton advises buyers to come to Japan, to partner with a local agent, and to review akiya for sale in person.

Coming to Japan to Buy Akiya

Anton’s book is part memoir of his own experiences breaking into the akiya marketplace in Japan. It is also very instructional, offering a lot of specific “how to” advice. Much of the book caters to a foreign audience, with detailed notes for foreigners buying akiya in Japan.

I can’t emphasize this enough, you have to be here in Japan. If you are here then they will help you, at least somewhat, out of politeness. But no one is going to help you remotely. It’s just not in their best interest to do so.

These comments helped us to appreciate Anton’s expertise. If you are buying a new condo in Sapporo, that kind of property is easy to find, there are relatively few problems with those transactions; we can help you find agents that will work with you before you arrive in Japan. But for akiya, and when the budget is low, Anton’s stories show foreigners the reality of doing business in Japan.

Anton provides a lot of first-hand guidance for how to make your experience in Japan more successful, including a series of checklists of “what to do before you come to Japan to buy akiya.” That section is three pages of specific ideas broken out by “12 months before…,” “6 months before…,” “3 months before…” leading up to the final days when you arrive.

While it’s possible to visit Japan as a tourist or even purchase a house here as a foreigner without a working visa, be aware of Japan’s vigorous immigration policies.

Part of the value of the book is in seeing how Anton was personally able to live in Japan, and to begin his success working with akiya properties. Because he was actively employed in Japan (as a model), he already had a visa that allowed him to be in this country on an ongoing basis. It was as a resident of Japan that he had the time and the opportunities to get personally involved in Japanese real estate.

Foreigners that do not plan on living in Japan can still benefit from Anton’s example, but will have to work out the details related to immigration and spending time in Japan in their own way.

Strategies for Investing in Akiya

Beyond general descriptions and preparation for foreigners, Anton’s personal expertise really takes off in Chapter 4 of Free Houses in Japan in a section called “Exploring Investment Strategies.”

You’ve decided that you’re going to purchase a property and renovate it. Great, now how are you going to make money from that property?

In this chapter, Anton provides an overview of 10 different business strategies for akiya in Japan. He reviews akiya business plans that involve short-term and long-term rental strategies, as well as ideas that focus on servicing special groups. There is even a table that shows the purchase price, the renovation cost, and the profit for a series of akiya rental properties owned by Anton’s friend Isono-san. In this chapter, and throughout the book, Anton provides a lot of detail about using Japanese akiya as Airbnb/minpaku.

With respect for Anton’s intellectual property, we’ll encourage you to buy the book, and read the rest for yourself.

Are There Loans to Buy Akiya in Japan?

Here at Find Hokkaido Agents we have invested a lot of time in researching property loans for foreigners in Japan. Of course clients are also curious about loans to buy akiya property as well.

You’re set to embark on this exciting project… Can foreigners even get financial help for this?

We know from our experience that if you do not live in Japan, most loans for foreigners are impossible, and out of the question for most distressed property (and especially in remote locations); banks don’t want to take on risks for property that cannot be easily resold.

However, Anton’s book Free Houses in Japan offers several examples from his own experience where he was able to get a loan. The exceptions from his personal experience are educational:

[T]here was one other exceptional agent who went above and beyond, not only negotiating a substantial reduction in the housing price, but also guiding me through the loan application process when I faced difficulty securing financing. His expertise and dedication truly earned him his commission, and thanks to him I got financing from a Japanese bank that had previously denied me for a housing loan.

Anton’s history of living in Japan, and his record of regular employment here (for years), makes him a better candidate for a loan than most other foreigners. Even so, he mentions facing “difficulty,” and it is ultimately via the connections of a local broker (that trusts him) that he found a loan that was otherwise not available.

To Anton’s earlier point about “you have to be in Japan;” a lot of the potential of business in Japan is unlocked as you can show your strengths to the local players in personal ways.

Property Management for Akiya in Japan

Where Anton performs a lot of hands-on management of his own akiya property, he is quick to point to the utility of local property management in Japan.

Decide whether you’ll manage the property yourself or hire a property management company. Managing it yourself may save you money, but it will require time and effort. Property management companies can handle everything from tenants screening to property maintenance, but they charge fees.

Once the property is ready to live in, or to rent, there are ongoing challenges that require the care of an owner (or a local representative). We recently wrote a guide to property tax in Japan, which also helps showcase how Japanese property managers and tax administrators in Japan solve many problems for foreign property owners.

Praise for Free Houses in Japan

Is Free Houses in Japan a great book? It most certainly is, we hope you can see our respect for Anton’s work in the level of detail in our review. Anton Wormann not only brings you a lot of relevant tips about buying and developing akiya in Japan, but he delivers that information with the authority that comes with personal experience.

People ask me, ‘Why don’t you keep your experiences to yourself and keep this valuable information and insights to a select few?’ My answer is simple: I enjoy teaching.

Free Houses in Japan: The True Story of How I Make Money DIY Renovating Abandoned Homes is an important addition in the catalog of Japanese real estate books. It is a valuable resource of practical information about akiya (and how to make money from akiya), and also provides an excellent education for foreigners buying property in Hokkaido or elsewhere in Japan.

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For more books about real estate in Japan that we recommend, we provide a review of Landed Japan, by Christopher Dillon, Yamamoto’s The Savvy Foreign Investor’s Guide to Japanese Properties, Winning Strategies for Japan Real Estate, the excellent Real Estate Transactions in Japan book, by Tada and Konishi, as well as overviews of several more books in our post on the best books about Japanese real estate.

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For More Information:

— Our collection of articles on real estate in Sapporo
— Some details on buying a house in Niseko and more
— Research on property in Otaru
— More general articles about Hokkaido real estate
— Guide to Property Taxes in Japan and Tax Administrators in Hokkaido
— Our review of Short-term Housing in Sapporo and Coliving in Sapporo
— Some particulars on real estate taxes in Japan