In the short term, RE might not be a good choice, but for the long term, it is a much better one on the average return.

If you can get an average return of 10% from the stock market, you are doing very well. But on the RE market, you can do much better in normal conditions.

In the large metro areas, 7% annual increase in RE price is common. If you put 5% down, you borrow 95% from the bank, your capital increase 20 times. If your rent can cover the interest, tax, insurance, HOA, and maintenance, your return is 20*7% which is 140%. Isn’t this simple enough? This kind of leverage is really great. If you can pay down the capital by the same time, this leverage is even larger.

It is also true that your risk is 20 times larger. But if you hold your property long enough, you will ride down and up cycles out.