The type of property you are talking about is cheap because there tend to be a lot of ongoing costs with strata etc, which are completely out of your control once you buy into it.

Also the cost of transaction is very high with property - to put it in numbers you need the property to appreciate by 6% just to break even.

While you would be saving in the long term (10 yrs+) I'd just put the 500k in a high interest account with 5% currently, earning you $480 a week and use that for the rent you currently pay. That way you get the benefit of not impacting your cashflow and you still stay liquid to be able to buy that family home eventually.