Apartment purchase for a well-known family

Hello everyone, I am new here and will start right away with my questions, introductions, and ideas. Since I am not really familiar with this yet and am just getting started, please bear with me :o

A few details about us: my wife is a lifelong civil servant teacher, I am an employee with a permanent contract for 8 years in the company. We are married and have 2 children (2.5 years and 8 months).
We only have a small savings reserve of about €10,000, the rest went on moving and children (new car, stroller, furniture, etc.).

We currently pay €700 cold rent + €200 additional costs for our 110sqm apartment with a 200sqm private garden and 2 parking spaces.
The apartment was built in 2009 and there are 6 units in the building.

We would have the option to buy the apartment (it belongs to an acquaintance of the family) for €195,000.
Actually, we did not want to live there for our whole lives and thought it would be good for the next 5-10 years, afterwards we would look for a house, because by then my wife will also be working full-time again.

So we thought about buying the apartment and imagined it like this: We buy the apartment, change a few things (garden, move a wall, kitchen). We pay it off for about 10 years, sell the apartment and thus have a good basis for a house.
Since we currently basically have €0 equity, we wanted to borrow a total of €230,000 including incidental purchase costs and renovations/furnishing. Sounds stupid, but if I borrow that much money, I also want to be able to say "come on, let’s buy a new bed, a bigger TV or whatever" (hope you know what I mean).
Well, apparently thought wrong, because the banks show us that after 10 years on a 30-35 year term, we will have paid off almost nothing on the apartment itself but only what we borrowed additionally. So in 10 years we would be right where we are now.

Do you have any suggestions for my case? Tips? What would you do?

I am now saying we will continue renting, save equity for the next 8-10 years and then buy/build a house that we will live in for the rest of our lives (naive, I know :o).

Well, apparently we thought wrong, because the banks calculate for us that in 10 years with a 30-35 year term, we have hardly paid off anything of the apartment itself, but only what we have additionally borrowed. So we would be back where we are now in 10 years.

30-35 year term? Are you talking here about the term until it is fully paid off or about the fixed interest period?

Since you plan to sell in at most 10 years, you would fix the interest rate for a maximum of 10 years. Because you are doing a >100% financing, the interest rate is of course anything but dreamlike... possibly around 3.5% for 10 years...

How much will still be left after 10 years depends on your repayment... how much do you want to pay off monthly?

You then have to compare all of this with the case that you simply save the same money...

My assumption/advice: drop the buying... You pay additional costs when buying, which are gone otherwise... then you pay the homeowners’ association fees and have the risk of having to participate in repairs etc. (HOA).
In 10 years you first have to find a buyer again... and you have to hope that the apartment has not lost value during this time... location etc. is also very crucial here!

Depending on how you tweak the individual parameters, after 10 years you can either be slightly ahead or massively at a disadvantage... What is certain is that you will have a lot more stress!
If the purchase price of the apartment were lower or you had significantly more equity, it could look quite different...
But as it is, you pay almost the same amount in interest to the bank as you currently pay for basic rent and have more ongoing costs + the additional acquisition costs!

So we already expected to pay more than the current cold rent, we calculated around €1000 plus additional costs, which would be manageable. No, we haven’t managed to save more, my wife is 32, studied until 28, I am 26 years old and did not have parents who set up generous building savings contracts or made any other provisions. I graduated from high school, then did an apprenticeship, then started working at 22 plus evening studies. So I didn’t really have much time to save. Then came a new car (new car), moving, furnishing children. So how is one supposed to save anything in such a short time? If I understand correctly so far, it absolutely makes no sense. So rather save diligently in the next few years and then buy/build a house straight away?

Don't tie yourself down with this financing. Save capital and then you can still look further.