Most people mention the tax deduction for interest paid on a mortgage. Many mention the $250,000 capital gains tax exemption for singles and $500,000 for couples when selling a home. However, there is one hidden advantage besides many others to buying a home and it lies in the mortgage.

When you take out a mortgage for say, $500,000, over time, inflation erodes the value of that money, even when inflation is around 2% annually. Imagine taking out an interest-only mortgage for $500k, paying interest for 15 years and then when the 15-year period ends, you still owe that $500,000. Well, 2% inflation per year, annualized, erodes the value of that $500k. By the time that 180th month rolls around, the buying power of $500,000 at the time of taking out the mortgage will be closer to $351,507 at the time of paying it off, meaning when you pay off your $500k loan, it will only "cost" you the equivalent of $351k. That's an additional "benefit" of around $10k per year. Not nothing. Now imagine what 3 or 4% inflation does to debt!

If you invest $30k per year (your tax savings plus your inflation savings) at 8% return, adding $30k per year over 15 years, compounded, that will amount to $964k.