"Demolition Cost AI" Launches "Subsidy Checker" for Municipal Demolition Subsidies - AI Automatically Searches for Available Subsidies Simply by Inputting Address and Building Information

Mycat Inc. (Headquarters: Meguro-ku, Tokyo) has launched the "Subsidy Checker" for users of its AI demolition cost diagnostic service "Demolition Cost AI" (https://kaitai.xyz). This tool allows users to search for available municipal demolition subsidies simply by inputting their address and building information.
Tool URL: https://kaitai.xyz/tools/subsidy-checker

## Deepening Vacant House Problem and the Spread of Demolition Subsidies
According to the Ministry of Internal Affairs and Communications' Housing and Land Survey (2023), the number of vacant houses nationwide has reached approximately 9 million units, with the vacancy rate hitting a record high of 13.8% (Source: Ministry of Internal Affairs and Communications, Housing and Land Survey 2023).

The revised Act on Special Measures for the Promotion of Proper Shifting of Vacant Houses, which came into effect in December 2023, newly established the category of "unmanaged vacant houses" in addition to "specified vacant houses." If designated as an unmanaged vacant house, the special exemption for residential land tax (reduction to a maximum of one-sixth) may be revoked.

Against this backdrop, an increasing number of owners are considering demolishing their buildings to make the land vacant. The demolition cost is a significant burden. For wooden houses, the general guideline is around 30,000 to 50,000 yen per tsubo (approx. 3.3 sqm), making it approximately 900,000 to 1.5 million yen for a 30-tsubo house.

On the other hand, many municipalities have established demolition cost subsidy programs as part of their vacant house measures. However, the names of subsidies, eligibility criteria, maximum subsidy amounts, and application deadlines vary greatly by municipality. While based on the Ministry of Land, Infrastructure, Transport and Tourism's comprehensive support project for vacant houses, some municipalities have established their own additional programs, making it difficult to gather comprehensive information.

## Mechanism of the Subsidy Checker
The Subsidy Checker displays a list of applicable subsidy programs by simply inputting three pieces of information:

**Input Items**
- Building location (Prefecture/City)
- Building structure (Wooden/Steel frame/RC)
- Year of construction (Approximate is acceptable)

**Output Results**
For applicable municipal subsidy programs, the following information will be displayed:
- Program name
- Maximum subsidy amount (e.g., up to 500,000 yen, within 1/2 of costs)
- Main eligibility criteria (vacant house designation conditions, owner requirements, building age requirements, etc.)
- Application acceptance period and destination
- Notes (Many programs are subject to closure upon reaching budget limits)

As subsidy program details can change annually, the data is updated regularly. The information displayed is a summary, and formal requirements should always be confirmed with the respective municipal office.

## Usage Scenario 1: Considering Disposal of Inherited Vacant House
When deciding whether to demolish or sell a vacant house inherited from parents, understanding the difference between demolition costs and subsidy amounts in advance can be a key factor. For example, if the demolition cost is estimated at 1.2 million yen and a municipal subsidy of 500,000 yen is available, the effective burden is 700,000 yen. This allows for an economically rational decision by comparing it with the expected sale price of the land after making it vacant.

Combined with the diagnostic function of "Demolition Cost AI," this enables a one-stop service from cost estimation to subsidy confirmation. The deadline for inheritance tax filing is 10 months from the date of inheritance, and the deadline for the 30 million yen special deduction on capital gains from the transfer of vacant houses is within 3 years of inheritance (Source: National Tax Agency, Special Measures for the Prevention of Vacant House Occurrence). Given these time-sensitive decisions, grasping the overall cost picture at an early stage is crucial.

## Usage Scenario 2: Considering Reconstruction of an Aging Home
If you live in a wooden house built over 40 years ago, it may not meet seismic standards. For buildings constructed before May 1981 (under old seismic standards), some municipalities offer demolition subsidies separate from seismic retrofitting.

By checking the availability of subsidies with the Subsidy Checker and incorporating them into the total budget for reconstruction, the accuracy of financial planning can be improved.

## Usage Scenario 3: Purchase Decision for Real Estate Businesses
When real estate businesses acquire land with old houses, demolition costs directly affect the procurement cost. By investigating subsidy programs in the property's location beforehand, it can be used as a material for purchase decisions. The availability of subsidies can often be a deciding factor when comparing multiple candidate properties.

## Accuracy of Subsidy Data
The subsidy information published in this tool is based on official information released by each municipality. However, subsidy programs may close their reception mid-fiscal year due to budget execution status. Furthermore, program revisions and abolishments are made at the discretion of municipalities, so please always confirm the latest information with the respective municipal office or official website.

In the future, we plan to add features to consistently support decision-making regarding vacant house disposal, such as integration with demolition contractor quote market data and a land utilization simulation function after demolition.

▼ Details of this matter: https://kaitai.xyz/tools/subsidy-checker

■ Company Profile
Company Name: Mycat Inc.
Established: February 5, 2025
Location: 2-7-22 Mita, Meguro-ku, Tokyo
Business Description: Planning, development, and operation of services utilizing AI for small and medium-sized enterprises and individuals.
Latest News: https://kaitai.xyz/news
Corporate Site: https://mycat.business
Inquiries: info@mycat.business