I'm a 26 year old guy living in Croatia (Europe) in a coastal town known for tourism.
Average salary in Croatia is around 700€, while I have a steady job and earn 1700€ (after tax) as a software developer.
Flats and houses are very expensive for our standard, averaging around 1900€/m^2 (about 216,000€ for 116 square meters or 1250 square feet).
Rent prices start from 300€ (per month) for 1 bedroom apartments, and around 450€ for 2 bedroom apartments.
Right now it's hard to find a long term renting place since many owners rent their properties to tourists during the summer.
Currently I pay 300€ for my 1 bedroom apartment which represents 17% of my month income.
Long term girlfriend earns 900€ per month and also has a very secure job.
We don't have any other loans or debts.
We found a house in the city center (most attractive area for tourists) that has 2 flats, first one having 2 bedrooms and second one having 1 bedroom.
Buying it with loan would mean 900€ per month for the next 30 years. Interest rate is 2.9% and total interest after 30 years would be around 33% of the house price.
We have around 10K € of savings and half would be used to cover property tax and other half is our emergency fund (5k € is enough for around 6 months).
1 bedroom apartment would be easy to rent for 350€ per month (that's the average price in the area for the same apartments) from which we would save 50€ for unexpected house repairs and 300€ for principal payments and loan reduction.
Our current lifestyle cost us 1000€ per month which would leave us with 700€ buffer.
We're considering waiting strategy that would allow us to take smaller loan but housing prices are going up each year and it's insane already.
I'd like to hear your opinions on this?