Is financing over 40 years possible/sensible?

Hello!
My better half and I are considering building a house or purchasing a house.
We are still in the very early stages and are currently trying to figure out what budget is available to us.
We are still young, I am 25 and she is 22, and we have a net income of about €3,000 per month in total (she is an apprentice). We pay €800 including heating for our 64 sqm new apartment.
We have equity of between €25k and €75k in prospect - but it is not yet in our account.

Basically, you want to have loans paid off by retirement age at the latest. For me, that would probably be 42-45 years.
Is it possible to stretch the construction financing over this time? And is that even sensible?

The idea is, of course, to be able to lower the installment a bit, or to get a larger amount from the bank.

Of course, we have the option to wait until our income increases (about €1,000 more when she has completed her training), but it really bothers me to pay such a high rent. I would rather invest that into repayment.

What options do we have and which are sensible?

I look forward to advice and/or ideas!

Hi,
I can only recommend:
- saving money
- finishing your training
- really having the equity in the account

best regards

but it really bothers me to pay such a high rent.

... and learn what advantages renting really has and how owning a property greatly restricts leisure activities as well as job finding.

800€ all-inclusive is not much rent, you have higher additional costs than a single-family house owner.

Equity is what you have in the account... so just wait first... and if it’s 25,000, then that just about covers the additional purchase costs as well as furniture and kitchen.

In low interest rate periods, one should manage to repay within 20-25 years.

but it really bugs me to pay such a high rent. I'd rather put that into paying off a loan.

I think owning a home yourself early in life is not a good idea. You are still at the beginning, have many opportunities to develop, and your needs are not yet set in stone.

If you finance now, you are handing over one egg to the bank and the other to the employer. It's much less painful when you are already settled and have made some career progress.

Besides, your argument about rent is not entirely correct economically. The 800€ is well below repayment + interest + additional costs for a house; however, your savings do not yield any return in an owner-occupied single-family home, especially not with interest over 40 years.

My recommendation would be to finish studying, work for 1-2 years, then carefully consider where you want to go job- and family-wise, and then approach the topic of building a house much more relaxed with the equity you have built up by then.

I have a personal opinion on 40-year fixed interest terms: What you can only pay off in such a long time, you really can’t afford. For me, 20 years is always the absolute maximum.
With 40 years, almost the first major renovation falls within the repayment period, which is nonsense. And as an owner, you pay for all that yourself – just convert such a calculation into monthly costs and then complain again about 800€ rent.

This may sound stupid now, but at your age, I would first wait and save calmly. The partner I had at 22, I haven't had for a long time..