Been saving, now wanting to buy 1st IP Want advice

Hi. I am new to this forum & was hoping some of you could give me some help & advice. I’ll take anything!
So I’ve been reading the forum here for the last hour or so and feel like I have learnt alot but at the same time wanted to ask some things more related to my circumstances.
I am 21 years old. At the start of next year (2006) I wish to get into the property market. By then I should have $30-35,000 saved. I work part time and earn $370 net.
My partner is also likely to want to invest with me, and he will have about $10,000 saved as he has only just begun to save recently. Combined we would have approx. $800 net income a week. We are both in no debt and are living at home so have very little expenses.
We are in Victoria and looking to buy a property on the Mornington Peninsula but are open to suggestions/advice if this would be a good idea. Seeing as we both have never brought a house, we will be eligible for the first home owners grant and are open to living in the house for the required 6 months before renting to receive the $7,000.
I would like to be able to buy the first house, and rent it after we have moved out after 6 months, and then with equity a bit later on and more savings buy another house to rent and so on.
I have a goal in my head to within the next 5-8 years hopefully profit $500,000 from these investments. Am I setting my goals too high and is this well out of reach and unreasonable or do you think this is possible and achievable with making the right choices. I’m not overly educated on real estate and such at the moment but have almost a year to learn before making the purchase and such.
Sorry about the long post and all but just wanted to post all the details so I could get accurate info. back from you more experienced folk and would be great if you could give me some tips/hints on what possibly to buy and look into as well as if my time frames and profits are way out of whack.
Thanks! Sarah.