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new copy
thats the way it works
And the answer is yes. If multiple people use the same PC with separate Steam accounts a game has only to be installed once and both users play from the same files, they just have each their own license.
It can cause issues with profile and achievements with some games if I recall correctly
Yeah but that is more related to how Windows handles save files depending on the location.
Its best to use separate Windows accounts too for multiple users so they dont overwrite each others files.
However not all games support separate savegames so once the game is purchased on his account be sure to check when you launch the game through your brother's account if it's showing your savegames or not.
If it's not showing any savegames then that means the game supports separate savegames and created a unique savegame folder/files for his account as opposed to yours.
Sharing a PC correctly -- that is, with separate Windows accounts -- means that the same game install will be used for everyone, but savefiles will be separated.
Note that Steam has a bug where it leaks Steam account logins between Windows accounts. If you share a PC, do not "store password" because the other Windows accounts will use the same login as well.