Your LG is right

1. The first house should be primarily your personal pleasure, then investment.

2. The market is soft. The high end house will not appreciate much.

3. You don't even have a baby yet, so schools mean nothing to you at this moment. 7 years later, the good chance is the suburb house will appreciate more.

4. If you work in downtown, buying a house in downtown may make sense, but since you work in suburb, it makes absolutely no sense to buy in downtown.