In addition to the price you pay for an investment property, you’ll also have to pay stamp duty, settlement fees and maybe even building and pest inspection fees.
Stamp duty is a state-based tax and the amount you’ll have to pay will depend on each state or territory’s individual model, but typically the higher the cost of the property, the higher the stamp duty will be. For example, in New South Wales, the stamp duty payable on a $600,000 property will be about $22,000, but in the same state the stamp duty on an $800,000 property will be about $31,000.
Subsequently, when buying an investment property, you’ll have to wait for it to rise in value equivalent to the costs of buying it before you can break even. When determining your final profit margin, you’ll also have to take into account the costs of selling.