I have 90,000 EUR and difficulty figuring out what to do with it. This money is in a savings account with an interest rate of only 0.05%. Here in Netherlands, I pay around 600 EUR each year on this money via taxation. So, I am losing quite a lot of money each year.
I also have no debt whatsoever, single, have a company car, and a decent paying job (no, I did not save up this money just by working).
I also have absolutely no knowledge in investing. Honestly, I am hesitant in investing in something what I cannot see (i.e., shares / stocks, etc). The only thing I am looking at the moment is investing in real estate for renting. Renting market in the Netherlands is huge. However, the apartment prices are sky high at the moment. I need at least 130000 EUR to even buy a small studio which I can then rent out for about 600 EUR per month.
Therefore, I am thinking of taking a small mortgage to buy such a studio (with 80-90% of my savings). However, I am afraid because what happens if in 5 years house prices drop, and all that money I earned via renting will be wasted on the fact that I overpaid for the apartment in the first place?
Do you think investing in rental property with a small mortgage is a good (or best) option here?
P.S. I am paying quite a lot of money for rental of apartment I am living now, however I have no desire to buy similar apartment for myself, because it will cost me approximately 300.000 EUR.