Horrible? The recent bubble aside, I understand real estate has historically been quite stable. Any good portfolio is diversified, so I don't really see why they are horrible.

P.S. Many people who "invest" in real estate rent the property, which throws a tremendous wrench in comparisons of simple appreciation.

Rate of a return is way too crude a measure. Real Estate is more stable, tax advantaged and most crucially to your wealth creation, the only investment class where John Q. Public can get 4:1 leverage (or better!).

I know individuals that have made millions, including family.