Bigger deposit = better deals from the lenders.

Break it, save everything you can and go in hard on the offers you submit. Round my way people have knocked 20k of the asking price to get the house gone, in some cases MORE!!!

If you get a good deal on the loan, and haggle a good chunk of the house, then your in good hands, who cares if the prices drop and then take a few years to come back up?? You'll be on a fixed rate and living in the place so makes no odds. if you haggle hard enough you will still be in equity anyhow.

As for second places etc, well, don't over stretch yourself, get stable in the first house then go from there.