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I think its a matter of opinion. If you dont want to rent, then you need to buy. If you have to buy in a specific area, then thats what it costs. if you want to borrow the bulk of the money, then you need to look at a bigger, and more expensive apartment. My opinion would be to rent first...

There are some lenders who can lend more than 80% for smaller apartments. Other than cash, you might be able to use equity, that is a proportion of the diference between the valuation of your current property and the properties mortgage. Its not cash you have saved, or worked for, its cash...