Makybe start small sure it may not be the best and will require sacrifice but if home ownership is what you desire it will be worth it in the end. In many ways compromise is the key to most things in life as most of us can't have everything we want right now but given a bit of hard work and time we can get it if we really want it. Just think if you buy the cheaper house you can pay it off quicker if you make higher repayments which means if you desire you can upgrade quicker to the better suburb if that is still what you desire - in the long run you would be better off with less risk of default due to changes in interest rates.