Purchasing a home is the largest investment that you would ever make. While purchasing a property see to it that you are not pressurized by estate agents, spouse, relatives or anyone else. Do keep certain things in mind while purchasing a property. There are certain costs that you have to incur before buying or selling investment property. These costs have to be taken into account while buying a property for investment, as this will affect the return on your investment. Certain costs are purchase price, bond registration costs, transfer duty, property transfer costs, miscellaneous costs, monthly costs of ownership, estate agents commission and capital gains tax.

Transfer duty is nothing but the tax that is paid to the government on the transfer of every property from one person to another. Miscellaneous costs include costs such as levies, new carpets and curtains and other maintenance jobs that need to be completed before a tenant can move in. Capital gains tax is incurred when selling a property at profit. Bank will loan you money and in return you will have to provide the band with some form of security, which is usually a bond registered over the property. The bond allows the bank to take the property away in the event of default.