Buy a smaller house/condo now and later down the road (5-10 years) sell it to buy a bigger place.
Wait, rent (for 5-10 years), and save to buy a bigger place.
Location: San Diego, CA (or nearby)
Price: $100,000 (guesstimate)
Down-payment: $20,000 (guesstimate)
Size: 1-2 BDR
Price: $300,000 (guesstimate)
Down-payment: $60,000 (guesstimate)
Size: 3-4+ BDR (for kids eventually)
I would guess that it would be better to do option 1. Reason being... when you rent, you don't really see that money ever again, but when you buy are place you are making payments towards an asset that you own. Of course there is potential to lose money in home maintenance/repair, the selling of one place to buy another, etc, but you are at least still investing in your own asset.
Is option 1 really the better long-term financial choice? What might I be overlooking?