Is buying a house sensible in the current market situation?!

not to forget that today's saving options are just a number on a piece of paper. In 1929, 1945, 1989 those papers were worthless overnight, grandma's house from 1910 still stands and the 5000 Marks back then paid off over generations in rent-free living

That's how it is - you can't always imagine that it was or can be different. The hit rate of analyst statements was once absurdly disproved by a university in a test with chimpanzees....unfortunately I forgot the names of the chimpanzees, in case I ever wanted to invest money again. Without nonsense - having experienced it personally, it was probably one of my parents' absolutely best ideas at the time to save up for a small, simple house and to forgo almost any luxury. Later in life they benefited from it....but the frugal time before that was by no means easy for them! It is also a understandable matter of attitude if you want to live "now" and mean by that having to live less frugally. I believe there is also a nice, frugal life....it's just a bit different. Still, I personally did not want to live with a horrendous monthly payment. Our property in the village didn't want anyone about 20 years ago, not even at a very, very cheap price, although it was rather a modern house in technically very good condition. 18 years later it was practically torn out of our hands and paid for at a very good price for us without complaint.....and the buyer was/is satisfied. No one knows how it will be - I feel significantly more comfortable WITH a home of my own. From that perspective, it may well be that if your life changes at some point you end up sitting on a formerly expensive property that nobody wants or only for a loss-making price; but it can also be the other way around. You live in the greater Munich area and prices there are crazier than anywhere else. Maybe you also have to make a deeper, more drastic decision regarding where you live or the region in order to be able to live according to this possibly existing wish; that would also be an option, although rarely and reluctantly chosen, namely starting anew somewhere else.

Why shouldn’t prices continue to rise? The state wants inflation, which makes sense because it can borrow cheaply. And the inflation in the ECB basket well, just take an ice cream scoop. With us, it costs everywhere between €1.20-€1.30. It is the best indicator. Before the euro, I paid 50 pfennigs. Ownership is also quality of life plus retirement provision. A monthly burden of €1,800 corresponds in 10 years to a current purchasing power of maybe €1,300... Rents will continue to rise, people want more space, plus there is population growth and immigration.... Not everyone has to make capital investments, but one should have property for oneself, also to be free of these costs in old age. I also find it partly amusing that when it comes to an apartment or house, €500k is said to be way too expensive, but financing a car for €80k is done relaxedly in Germany, where the depreciation is enormous and the thing after a few years tends towards a residual value = 0.. But it is a typical phenomenon in Germany...

Before the euro, I paid 50 pfennigs.

I agree with most of the rest of the post, however, before the euro, that is in the DM era, you probably last paid 50 pfennigs for a scoop of ice cream in the early 1980s. Before the euro was introduced, it already cost 1 DM (sometimes even more).

There is now the possibility that we could buy a property in our desired location. Entire plot. Regarding that:

It is "unfortunately" only a terraced mid-terrace house, it would still need to be renovated according to our wishes (occupied by an elderly lady in recent years) and costs about 400K.

What is still negative for us: no direct access to the garden, no garage at the house, no parking space (I don't have more details yet, as this is still relatively new).

A terraced mid-terrace house was never an option for us because of the narrowness and poor lighting conditions; now we have looked at a few "modern" terraced mid-terrace houses that had floor-to-ceiling windows, were very well laid out, etc.. and this offer has made us start thinking.

In my opinion, the price/performance ratio is not right for such "small" properties. Or maybe we simply lack the necessary imagination for a terraced mid-terrace house...

Thanks for your opinions :-)

what is still negative for us: no direct access to the garden, no garage on the house, no parking space

Typical for houses in the city. I don't see it as a real or major disadvantage. I don't drive into the garden anyway ;-)

A terraced house in the middle of the row was never an option for us because of the tightness and poor lighting conditions

The terraced house in the middle of the row is not tighter than the detached single-family house. I agree with you on the lighting. It doesn't look so good, especially in older buildings.
But if a lot is going to be done anyway, this problem can be solved (in the upstairs it is usually not so critical, rather in the living/dining area).

In my opinion, the price/performance ratio for such "small" properties is not right. Or maybe we simply lack the imagination for terraced houses in the middle of the row...

If there had been suitable properties for you on the market overall so far, you wouldn't still be searching now. So price/performance ratios (subjectively) are generally not fitting.

Pros of terraced houses in the middle of the row:
- Your desired location
- generally more affordable due to smaller plot share (in some areas you are glad to have over 150sqm of garden if you can afford it at all)
- good thermal efficiency because heated on the right and left sides
- you can make something out of almost every property

We lived for 18 years in a mid-terrace house. The light at the dining area on the ground floor in the middle was on very often. From the first floor it was then fine with an east-west orientation. The attic with 3 roof windows was also good. If the price is right, you can't go wrong. You don't have to live there forever if you later want more light and space and it fits your budget at your desired location.