Rental income services the mortgage. The tenant acquires the asset on your behalf. Equity from your home seeds the deposit — no new cash required.
02
Logan Wealth Salary
The spread between Logan Yield and borrowing cost pays a real salary — from day one. This is income you live on.
03
Rent rises with inflation
Your income stream inflates automatically. You do nothing. Inflation works for you, compounding the salary year on year.
04
Asset value rises
Property value tracks inflation in nominal terms. Equity accumulates passively — without a single additional pound invested.
05
Debt eroded by inflation
The loan is fixed in nominal terms. In real terms it shrinks every year. Inflation is quietly paying down your mortgage.
06
The Logan Spread Effect
The spread between Logan Yield and borrowing cost, compounded on a leveraged base, systematically outpaces conventional interest. 3% rent growth produces 57% salary growth in 10 years versus 34% in savings.
The Logan Spread Effect
The phenomenon by which the Logan Spread — the difference between what borrowed money earns and what it costs — when compounded against a leveraged base, produces salary growth that systematically and increasingly outpaces conventional compound interest.
Same input. Same 3%. Fundamentally different outcome.
The Logan Spread Effect in numbers — 3% annual growth
Year
Compound %
Logan %
Advantage
1
3.0%
5.0%
+2.0%
2
6.1%
10.1%
+4.0%
3
9.3%
15.4%
+6.1%
4
12.6%
20.8%
+8.2%
5
15.9%
26.4%
+10.5%
10
34.4%
57.0%
+22.6%
"The same 3% that barely moves a savings account transforms a leveraged property portfolio — because it compounds on a yield, not a deposit. Income, asset growth, debt erosion, and inflation alignment run simultaneously. This is not investment theory. This is how Jez Logan lives."