I have had many friends in your situation have said DON"T RENT WHILE WAITING!!!. Buy what ever you can even if it not what you want. If what you want is $40K more than you can afford in 5 years it is +70k. Buy buying you are in the market. If you want that downtown property and you buy a house now your place place will appreciate and you only have to worry about the gap between where you are and where you want to be. Many freinds were wainting to buy there dream house but never got there because it just kept going up. The ones that bought something as soon as they could aford it are now moving up to their dream houses.
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