First, yes, I think your calculation is correct.
Next, on your more controversial second question, two points:
Recognize that you're benefiting from hindsight in making your assessment about the returns from real estate (presumably Canadian) being better than the "mediocre" portfolio returns. In 2005 you could not have known that in advance. And today, you also can't say what the future will bring.
If one were to invest $100K entirely in real estate, as opposed to a diversified portfolio with multiple asset classes, one would be taking a much larger risk due to being concentrated in a single asset class. What if real estate seriously tanks? Then the whole $100K suffers much more than if real estate were but one component of the portfolio.
The entire point of investing in a diversified portfolio of cash, stocks (domestic and foreign), bonds, and real estate (via REITs, which are one piece of the portfolio you mentioned) is to reduce risk. Chasing returns alone can be foolhardy.
I suggest you research the following subjects:
- "risk-adjusted returns",
- "Modern Portfolio Theory".