Short answer:
Get on the ladder. You need a roof over your head. It doesn't really matter how much the property is worth in the short term. Negative equity is only a problem when you sell.
Building equity only really matters if your plan is to eventually downsize and release money to help fund retirement or to be mortgage free.
Best street thing is a safe bet but certainly here in London you can get more by picking the next hotspot before it takes off.
Good areas are always expensive. Up and coming areas have more scope for bigger profits, or getting more for your money.
Try to get a house that will meet your future space requirements, or with scope to extend. In a rising market it quickly becomes impossible to move up the ladder in the same area.
Make sure you have enough headroom to fund a hike in interest rates.
Now the rambling bit:
Overpaying whilst mortgage rates are low isn't always the best option. Pay more into your pension instead. You'll get tax relief and maximise employer contributions.
You can use tax free lump sum in retirement to pay off mortgage.
If interest rate rises reduce pension contributions to cover increase in mortgage.
Met my (final) wife in 1987 after divorce. Bought her flat and rented it out whilst we moved to another house together. Prices crashed but just waited until they recovered and the (then non paying) tenant was evicted. Came out with small profit. Put me off BTL for life. Should have stuck with it. Cheaper areas of London have rocketed over the years.
Wife took redundancy after first child born. Used money to move to much nicer area.
Should have rented that house out too!
Bought smallest house on one of the best streets. Now Aston Martins and Porsches down the other end of the street whilst I've kept my battered 2004 CR-V
Been here 28 years. Extended and improved. Now an empty nest and I've retired. Neighbouring areas have shot up by bigger percentage
Actively looking to move to Suffolk.
Surprised and pleased with our valuation. House will sell very quickly.
Problem is the market for our target areas and property type is just as bonkers as where we are now. Multiple offers over asking price for properties we like and sold within 1-2 weeks.
Bloody WFH Johnnies have over heated the market out in the sticks.