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Subsidies for home renovations

In Part 1, I discussed why there are many affordable vacant houses in rural areas of Japan. In Part 2, I outlined how to purchase these properties. In Part 3, I'll explain the essential points for renovating houses in Japan and the subsidies available for such projects.

If you're married to a Japanese citizen or have special permanent resident status, you may qualify for various subsidies provided by local governments.

Even after purchasing a house, it requires ongoing investment for repairs and maintenance, especially if the property is old. Costs for repairs and renovations are inevitable. If you purchase a house at a low price without considering these expenses, it could end up costing you a significant amount of money.

In rural areas grappling with significant outmigration of young people to urban centers, as well as a declining birthrate and an aging population, various subsidies are offered to entice newcomers. Moreover, in regions experiencing an increase in vacant houses due to population decline, subsidies may be provided for utilizing or refurbishing these properties.

The specifics, eligibility criteria, and amounts of these subsidies differ from one area to another, making it challenging to provide definitive information. However, some regions offer up to 1 million yen for families to relocate and reside in the area for a set period. Alternatively, subsidies may cover accommodation expenses to aid in the search for housing or employment in the new area. If you're considering moving to a specific region, it's crucial to investigate whether such subsidies are available there.

For instance, in the area where I purchased my house, subsidies are offered for the utilization of vacant properties. If you buy a newly vacant house and renovate it, you can receive a subsidy covering a portion of the renovation costs.

However, these subsidies are only accessible for vacant houses registered in the local government's vacant house bank. Moreover, there are various conditions and restrictions, such as limiting the number of contractors you can engage when using subsidies. Additionally, construction cannot commence immediately because it takes time to apply for and receive permission before beginning the work. These limitations should be taken into consideration. Hence, if you intend to utilize such subsidies, it's essential to thoroughly research the specifics and conditions applicable to the area where you plan to purchase a house. You should also consider the optimal timing for applying for subsidies and purchasing the property.

Furthermore, since the Japanese government transitions fiscal years in April, there's a regulation that the budget for the fiscal year must be exhausted by February or March. Subsequently, the newly allocated budget is utilized from April onwards. Consequently, towards the end of the fiscal year, there's a chance that the budget has been depleted, resulting in unavailable subsidies. Alternatively, subsidies might not be accessible because construction may not be completed by the end of the fiscal year. To ensure access to subsidies, it's advisable to apply for them at the beginning of the fiscal year, typically in April or May.

Subsidies and grants aimed at encouraging domestic migration may not be accessible in densely populated urban areas. However, many municipalities provide subsidies for seismic retrofitting, which should be actively considered when purchasing and renovating older homes constructed before June 1981, which do not comply with current earthquake resistance standards.

The decision of whether to utilize subsidies for seismic retrofitting is a crucial aspect of the retrofitting process.

For instance, the second-hand property I acquired was constructed before the enactment of the Building Standard Law. Consequently, the ground floor has minimal walls and diagonal bracing, raising concerns about potential collapse of the ground floor under the weight of the upper floor during a significant earthquake. Hence, it's imperative to alleviate the load on the ground floor by replacing heavy tile roofs with lighter roofing materials. Additionally, reinforcing the ground floor's strength by adding more diagonal bracing and load-bearing walls is necessary.

Furthermore, the building possesses minimal foundation, and reinforcing bars were not utilized. Some foundations exhibit cracks, posing risks even if the ground floor's structural elements are enhanced. Therefore, reinforcing the foundations is essential to ensure their resilience against earthquakes.

While seismic retrofitting can be undertaken as a do-it-yourself (DIY) project, in this scenario, utilizing subsidies for seismic retrofitting isn't feasible. Typically, to access the subsidy, you need to engage an architect or a construction company to conduct an earthquake-resistance assessment, apply for the subsidy, and then hire an approved contractor to perform the seismic reinforcement work once the application is approved. Consequently, if you opt for an earthquake-proofing assessment and it's determined that there are no issues, you won't be eligible for this subsidy, and you'll simply incur the cost of the assessment.

However, it's improbable that there won't be any seismic issues, as many older homes often exhibit seismic vulnerabilities. To assess to some extent whether a house you're considering buying has earthquake resistance issues, you should inquire with a real estate agent about the type of foundation (reinforced concrete), the distribution of pillars and walls (more on the ground floor than upper floors), and the positioning of walls (uneven placement). Particularly, older Japanese wooden houses tend to have fewer walls due to the extensive use of fixtures like Shoji and Fusuma sliding doors. There's also a tendency to increase openings by reducing the number of walls on the east and south sides to maximize sunlight, which can exacerbate vulnerability to collapse during earthquakes.

Merely adding more pillars and walls won't necessarily enhance earthquake resistance; achieving balance in the load distribution is crucial. Amateur judgment in this regard can be challenging, so even if you plan to renovate your house as a DIY project, it's advisable to seek guidance from an architect or construction company.

The concrete foundation of the current buildings typically extends across the entire ground surface, providing comprehensive support. However, in older buildings, the concrete foundation is limited to beneath the wooden foundations, leaving the ground exposed. Additionally, these older foundations may exhibit cracks and lack reinforcing steel, which can compromise their structural integrity and stability.

Wide openings are a distinctive characteristic of Japanese buildings, adding to their aesthetic appeal. However, they also pose a significant drawback by decreasing earthquake resistance. In older Japanese houses, ventilation was prioritized over earthquake resistance. As a result, sliding doors that could be easily opened and closed were commonly utilized for partitions instead of solid walls. (Photo taken at Sanshu Izutsu-yashiki)

There are additional subsidies associated with home renovation. If you're considering repurposing an old building as a store or office, subsidies for launching a new business might also be accessible for building renovation. However, the amount and eligibility criteria for these subsidies also vary depending on the local government where the property is situated. Therefore, it's essential to research the available subsidies in that municipality to determine what options are available.

Hence, in Japan, there are numerous subsidies available for individuals relocating to rural areas. However, if you're not married to a Japanese citizen or don't hold Japanese special permanent resident status, your access to subsidies will be limited.

Regrettably, Japan has been somewhat hesitant in welcoming immigrants from abroad, resulting in relatively few subsidies and support for expatriates. To receive comparable support to Japanese nationals, expatriates must overcome significant obstacles such as marrying a Japanese citizen or obtaining Special Permanent Resident status.

Individuals with a clear understanding of Japan's current situation recognize the challenges of maintaining the current social system without immigration. Nonetheless, both the Japanese populace and government exhibit strong resistance to accepting immigrants. Consequently, the Japanese government is striving to address labor shortages by seeking workers from overseas under the guise of temporary internships and traineeships, rather than implementing an immigration policy. Therefore, it's improbable that immigrants from abroad will have access to subsidies and government support equivalent to that of Japanese citizens in Japan anytime soon.

If you harbor aspirations of relocating to Japan from another country, it's essential to prepare for these realities.