First Home Vs First Investment

Hi All,

I'm new to this site and I'm still researching in acquiring a first home or first investment. By the way, I would fairly say that I'm also new to Australia. I also just bought  Steve's book " From 0 to Financial Freedom". I have little knowledge about the disadvantages and advantages of FH and FI.

I spotted a property at our ideal suburb for our first home. It's a 9yo, 4br house with 2TB on 590sq.m lot  and 5 minute walk to our target primary school. The owner is selling it for $405k -$450k with someone currently offered $405k to the agent. The median house price of the suburb is around $580k.

On the other hand, I spotted an ideal investment property at nearby suburb. It's 13yo, 4br house with 2TB on 1100sq.m lot. The area and neighboring lots were mostly units or townhouses so I'm thinking that I will be able to subdivide or build 3 townhouses/units. The lot is next to a commercial corner lot and all the property facing the main road including the corner lot are all commercial. I reckon this property will be eligible to be commercial in the near future hence will increase its  value. The owner wants to sell it for no less than $500k. The median house price  for this suburb is $371k.

Which one do you think is best? I'm being cautious on where to spend my hard earned savings. By the way, I only managed to saved $60k at the moment and I'm renting with wife and 2 kids.

Hope someone can help and enlighten.