Should I buy an apartment to rent out?

Q.

I have been saving since I have left uni and have a $50,000 deposit, which I intended to use for a house (valued between $250,000 to $320,000) to live in. Unfortunately I cannot find a house of this value in an area I wish to live which is close to my work. Therefore I have changed my mind a little about how I would like to invest the $50,000. My current thinking is to buy an apartment or student accommodation for around $180,000 - $200,000. In addition to this, I would invest the remaining $10,000 into shares. I would put tenants into the apartment, and rent accommodation myself closer to my current workplace. I would like your thoughts on this, and any other ideas you have.

You have done well to date and what you propose is quite reasonable. However, I believe that shares long term will give you better growth than a home unit and you won't have the worry of maintenance or vacancies. The alternative is to keep saving and hope that you will be able to afford the property you want in a couple of years.