Should I save my money or buy something small before prices rise further?

Q.

I am 23 years of age, single and earn $59,000 per annum. I've saved $50,000 over the last two years and a friend has recommended that I buy an investment property. My dad thinks I should buy my first home and pay off the mortgage. I'm planning to study post graduate law next year ($80,000 government loan, three years part time). I could move back home for free but I don't know what will happen with my personal life. Should I save my money or buy something small before prices rise further?

Right now house prices appear to be flat so I can't see the need to hurry. Also you are in the 30 percent tax bracket which means you will not get much tax relief from negative gearing. I suggest you continue saving until your goals are clearer.