I bought a $54,000 abandoned house in Japan and transformed it into a luxury Airbnb

I purchased an abandoned house in Japan for $54,000 and successfully renovated it into a luxurious Airbnb. This transformation involved extensive updates and design choices that enhanced the property’s appeal, turning it into a stunning getaway. The journey showcases the potential of revitalizing neglected homes and offers a glimpse inside this beautifully restored space, highlighting its unique features and inviting atmosphere.

‍Anton Wormann, 32, has always been passionate about DIY projects and creating stunning spaces. When he found out that his neighbor's house had been abandoned, he decided to buy it and restore it.

Upon examining the property, Wormann realized it had been empty for around a decade following the death of its elderly owners. This house was one of the nine million "akiyas," or empty houses, in Japan, according to government data from 2023.

While many countries struggle with housing shortages, Japan faces an oversupply issue. From bustling cities to serene countryside, these vacant homes are widespread, with prices starting as low as $10,000.

Japan's ongoing demographic crisis has resulted in millions of vacant properties. The nation's population continues to decline, with the fertility rate dropping to a historic low of 1.2 births per woman as of 2023. Meanwhile, the elderly population is rapidly increasing, with those aged 65 and older projected to represent about 30% of the population by 2024.

In Japan, death rates have exceeded birth rates, leading to abandoned properties. Some individuals, like Wormann, see this trend as a chance to invest in real estate at low prices while preserving valuable Japanese architecture.

Wormann, who grew up in Sweden and lived in major cities like Paris, London, Milan, and New York for nearly ten years, fell in love with Japan during a work trip in 2015. After that trip, he made it a point to return to Japan every year. “Every time I was about to leave, I never felt ready to go,” he shared, expressing his admiration for the beautiful scenery, delicious food, and rich culture.

“I wanted to stay longer. I can't quite express it, but it resonated with me,” he said. Thus, in October 2018, he made the decision to move to Japan.

As he became more familiar with the culture and language, Wormann saw a significant opportunity in acquiring akiyas, renovating them, and transforming them into attractive short-term rental properties.

“I read some articles about it and found it fascinating, but I didn't realize how serious the problem was or the opportunity it presented until I moved here, learned Japanese, and integrated into the community,” he noted.

As a child, Wormann and his father would explore ideas about renovating old houses they encountered, sparking his lifelong interest in such projects. Before he found his neighbor's house, he had already renovated several properties in Sweden and Japan.

“Creating something beautiful takes time, and it results in something unique,” he explained. “To develop something exceptional that you’re proud of brings me great joy.”

After identifying the vacant property next door, Wormann contacted the owner's children with the help of a neighbor. He purchased the 86-year-old house for about 8 million yen (approximately $54,000), excluding closing costs and fees, as detailed in documents reviewed by CNBC Make It.

The property still contained belongings from its former residents, a common scenario for abandoned homes in Japan. It was infested with termites and required significant structural repairs.

“I was definitely intimidated... I had only seen it from the outside, so I could only imagine what it looked like inside,” he recalled. “I expected it to be clean, empty, and quite small, but that was not the case.”

“There were many uncertainties, but I loved the location, the sunlight, and the size. If you have those factors, you can fix almost anything,” he stated.

The renovation took Wormann 15 months to complete. “In Tokyo, the land is very narrow, so you have to demolish one part and dispose of it as you go; otherwise, the renovation won’t progress,” he explained.

“So, it was a cycle of demolishing, renting a car to take it to the dump, and then returning. This process continued throughout the lengthy renovation,” he noted.

Wormann said the design elements for the home developed gradually. “You feel how and where you want things to be. You sense the sunlight and the space. What can you salvage from the original details?”

“Every small decision came from spending thousands of hours in that house,” he added.

In total, Wormann dedicated about 1,500 hours to working on the house over the course of a year. “It consumed my thoughts. I lived for that house for a year,” he reflected, adding that he spent another 8 million yen (around $54,000) on renovations.

In total, the purchase and renovation cost around $110,000. The property has become a favorite among tourists visiting Tokyo, renting for about $500 a night on Airbnb. It generates approximately $11,000 in rental income each month, according to documents reviewed by CNBC Make It.

‍What began as a passion project for Wormann is evolving into a successful business. The 32-year-old now owns eight properties in Japan, seven of which were previously abandoned homes. He has completed renovations on three of them and is currently working on four more.

With dedication and effort, these neglected houses, which some may view as dilapidated, can be revived into beautiful homes, Wormann believes.

“There are dying villages in Japan... From a cultural standpoint, many beautiful houses are being wasted.”

“There are numerous properties that thrived 30, 35, or 40 years ago but are now abandoned and forgotten. It’s fascinating but also somewhat sad. However, you can save and salvage them,” he concluded.

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Source: cnbc‍