Is financing theory practical?

In the securities area, an investment >=5 years is considered long-term.

Well, that is something else
Honey, I forgot to sell our Telekom shares. Unfortunately, 5 years have already passed since their peak.

Of course, I cannot see into the future, but personally, I cannot imagine that we will be in the same position in 5 years as we are today.

I can also well imagine that the euro will waver if the Hitl... in Turkey continues.

Anyway, everyone has to decide for themselves with what equity they build.

Building involves several parameters. One of them is equity, another one for example is the available income, which was mentioned here before. Therefore, your question cannot be answered correctly as it is.

Then there is, last but not least, the interest rate. If it is still at the current level, I would rather take the risk earlier and with less equity. Personally, that is what I am doing in practice right now.

Ultimately, one can come up with the standard answer we use in IT consulting: it depends.

There is no general recommendation. Ideally, one would have saved up a substantial amount of equity in the last 10 years. We couldn’t do that either and were also faced with the decision at the beginning of the year. Arguments for now: prices are still rising at the moment and interest rates cannot go much lower anymore. Of course, the bubble could burst in 5 years and we (17 km from the state capital, but in a village of 1000 inhabitants) could then buy significantly cheaper again. But it could also continue like this and we would then have to move even further out into the countryside. Arguments for NOW were that I am in my mid-30s, so time to pay off at some point is getting tight, we have permanent jobs here, and we don’t pay that little rent (800€ cold). Personally, I think that in 10-15 years the (used) property prices will partially go down, as some people will have problems with follow-up financing. But we did not want to rely on that. Also, renovations will have to be done on these houses again, which cost money.

I would look at it again in 2-3 years, then you might see a trend.

By the way, are you sure that your wife/girlfriend actually earns 2700€ at the start of her service? My wife also started this year at the high school and she earns about 500€ less. From that, private health insurance is also deducted, so in the end she is left with "only" 2000€. Ultimately, your savings goal overall is very ambitious. At least with the expensive plot, you initially planned to save 2800€ with about 5000€ income. In my opinion, that only works with very low or no rent and low maintenance costs for vehicles, etc. When I add up all my fixed costs + insurances, etc., that is already about 2000€. But I haven’t even considered holidays, eating out, going to the cinema, etc.

70km from Stuttgart

So it is the Swabian Alb after all

Update:

We have actually been allocated and purchased a plot of land (~600m² - 160k + additional costs). This will be paid entirely through equity.

Now we are in the process of building up further equity for ancillary construction costs and a buffer. The current plan is to keep saving until we have about 100k together. After that, it is supposed to start.