My Takeaway: A property on 10 acres can save you $800/mo in your payment or with a loan you can afford $228,000 more with low taxes.
Act 319 is a law passed in Pennsylvania in 1974. It lowers property taxes for property with at least 10 acres. I pulled up properties under $700,000 in our area with at least 10 acres.
I’m going to compare 2 properties priced at $599,000. One is under Act 319 and the taxes are $3792/year and another home that is not under Act 319 and taxes are $13,390/year.
271 Greenbelt Dr. Parkesburg, PA 19365 Currently on the market for $599,000 and the yearly taxes are $3792 because it has over 16 acres and is under Act 319. With 20% down loan at 3.75% and $1500 homeowner’s insurance here is the estimated monthly payment:
1341 Pikeland Rd. Chester Springs, PA 19425 Currently on the market for $599,900 and the yearly taxes are $13,390 because it is only 0.64 acres and not under Act 319. With 20% down loan at 3.75% and $1500 homeowner’s insurance here is the est. monthly payment:
That is a difference of $847/mo difference for the same priced home. Imagine if you had a budget of $3500/mo and the taxes were under $4000/year. Instead of $599,000 house you could now afford a $828,000 house.
Here’s more information on Act 319: http://www.chesco.org/256/Act-319—Clean-Green