My recommendation is to put it in something like the Vanguard REIT ETF. So if real estate is up by the time you are ready to buy your house your investment will

My recommendation is to put it in something like the Vanguard REIT ETF. So if real estate is up by the time you are ready to buy your house your investment will likely be up proportionally. In the event you get a negative return it is very likely your down payment might be lower as well. Alternatively if you want to lower your risk (which also lowers your expected reward) you may invest half in REIT ETFs and the other half in an uncorrelated sector. Think of what sector goes up when real estate goes down. DISCLAIMERS of course: This is not professional advice. Invest at your own risk.