Firstly, you'd be stupid to put leisure ahead of investing once you are working full time (its very difficult to save anything as a student on shitty wages).
I think the thread should be changed to "Car vs Investment" because houses aren't the only investments you can make.
Just be careful with purchasing a house now as an investment. There are some false beliefs regarding houses as investments and this can cause financial heart ache.
For one, house prices do NOT double every 7 years, they have just happened to double in the last 7 years. There was a roughly 10-15 year period before that where the majority of house prices were stagnant. We can observe a similiar cycle during the 80's, when house prices skyrocketed as they have now and then there was a good 10-15 years of stagnation.
This is one of the most fundamental concepts of investing; after a huge growth/loss period there will be a long period of stagnation. At the moment the median Melbourne house price is around $470,000; meaning it is somewhere around 8 times greater than the average wage - this means that it is incredibly difficult for the average person to afford a house. We will at the very least see a prolonged period of stagnation in the price of houses in Melbourne (and undoubtedly Australia) because wages have not grown as fast as house prices.
In my opinion, there will be many people who will receive a rude shock over the next 5-10 years when the price of the investment property they bought doesn't increase by a very large percentage (if at all). When you factor in the impossible high prices of homes compared to the average wage and the expected interest rate hikes; there is every chance that the housing market could actually retract like it has in the USA, UK and parts of Europe because the average person simply can't afford to buy a house.
Keep that in mind when deciding on whether or not to purchase a house.
To answer your original question, at least if you buy a house its value will increase in the long run (10+ years), and if you buy at the right time and buy the right property you could snag yourself a bargain and sell it for more than what you paid for it. You can't do that as easily with a car.