For what is worth, I'm in Spain, but I guess this could apply everywhere in Europe.

I'm 37, renting at a fairly high price (Although my salary allows it), looking to purchase my first (or maybe only) home. For reference, payments (plus taxes and all that) and size of flats in my zone would mean either keep current expenses or spend a bit more for a little more space.

I've been looking for over two months already. My plan was to just find a place bigger than my current flat, get into a 20-30 year fixed-rate mortgage and call it a day, but late news on interest rates are making me slightly nervous about spending the rest of my working life paying a house with too much interest.

I've been thinking about going for a small home with expectations of paying it up in 10-15 years so I don't get hit too hard on interest rates, cross fingers for things to get better and eventually move out. Renting that flat would not be out of the question but I don't really see how could I have enough saved to both pay the flat and also the new one, so it would be probably selling and moving out.

So, suggestions, personal experiences, ideas? I'm quite risk averse, so investing on something that has a minimal chance of failure while I don't have a flat actually paid is out of the question, and honestly, I'm longing to move to a place that I own.