Kyoto’s traditional machiya townhouses are a popular commodity with domestic investors looking to profit from the booming tourist industry.
Machiya are appealing for their charm and character which cannot be easily replicated in new construction. The traditional architecture and relaxing interiors are also a major drawcard for tourists travelling in families or groups.
The age of these old properties also has tax benefits. Brand new construction may have a useful life for tax depreciation purposes of 20 years or more, but with an older property, the depreciation can be amortised over just 3 ~ 4 years in some cases. For an investor with a high annual income, this could allow them to reduce their tax burden.