James Kirkland’s work as an army mechanic and strong savings ethos fuelled his property portfolio.

In 2010, James Kirkland was deployed to one of the world’s most dangerous and politically volatile countries, Afghanistan. Working as a mechanic with the New Zealand Defence Force, he kept his head down, worked hard and saved.

These savings fuelled the purchase of a house in Mangere that same year. The home has since tripled in value – his dangerous mission rewarded by substantial equity gains.

Kirkland’s property investment story is unique. Not many investors work in the most dangerous country in the world to get on the property ladder. But his risks have proven fruitful and he’s building wealth through long-term investment and keen to share his knowledge with others.

The Savings Bug

Raised in Invercargill, Kirkland wasn’t born into a family of investors. But his parents and grandparents were passionate about the importance of saving, and he soaked up their message, mowing lawns to make money.

While he excelled in maths at high school, formal education wasn’t his thing, and he left halfway through (what was then called) sixth form.

His first job was on a farm, but dairy farming and 4am starts weren’t his bag. He’d always wanted to be a mechanic and discovered the army offered apprenticeships, so in 2003 he joined the NZ Army as an apprentice diesal mechanic. He was based in Waiouru for the first three months, then Trentham Miltary Camp. The army provided accommodation and food, and the opportunity for serious saving.

His first deployment, to the Solomon Islands in 2008, was also a chance to save. A high-risk deployment to Afghanistan two years later boosted his savings considerably. “[The army] pays more for missions to dangerous locations. I was able to save 100 per cent of my salary for the six months I was stationed there.”

The experience also provided the opportunity to see how challenging life can be for those in places experiencing significant unrest. “The average life expectancy there was 60. The quality of life in Kabul, where I was working, was very poor and made me realise the opportunties we have in New Zealand.”

New builds are part of Kirkland’s property strategy.

Renos, Tenants

By the time Kirkland returned from Afghanistan he had enough saved for his first investment property. In 2010, Auckland property had not reached the vertiginous heights of the following decade, and he was able to secure a stand-alone three-bedroom property in Mangere for under $300,000.

Kirkland purchased this property from a trader who showed him around before planning a full renovation.

“The lawns were up to my knees, the windows were smashed, and the hot water cylinder and copper piping had been stolen,” he recalls. The trader promised to fully renovate the property and provide a registered valuation $50,000 above the purchase price. Sure enough, a month later, the property was fully renovated, with the promised valuation, and the contract went unconditional.

The house has proven its worth, with a yield of over 7 per cent, and a huge increase in value.

In 2011 and 2012 Kirkland undertook renovate-and-sell ventures with a friend. Each renovation made a profit of between $30,000 and $40,000.

“We used professionals for the building work, but did all the demo work ourselves, which we enjoyed,” he says.

Shortly after, he moved to Palmerston North, and signed up to the Property Investor Centre, a property investment service that offers coaching and property finding services.

“It taught me all about the importance of cashflow. I ended up buying a block of apartments in Napier in 2014 – four one-bedroom units that were dated, but serviceable.”

The units were upgraded – new heat pumps, double glazing, blinds and carpet, and full adherence to Healthy Homes standards. Managed by Oxygen Property Management, they have provided excellent cashflow and there has been less than a month’s vacancy across all four units during the ten year period he’s owned them.

Kirkland has decided to change direction with his career and start working as a mortgage broker.

The PortfolioKirkland moved to Rolleston with his wife and children in 2015 and they purchased a four-bedroom family home. When Covid struck, he started listening to the popular Property Academy Podcast, where he discovered that this area (just over 20km outside Christchurch) was starting to heat up.

Armed with this knowledge, he decided to invest in an off-the-plan standalone property close by. By the time it was built, 18 months later, the value had increased exponentially. He still owns the property, which is paying for itself.

“Overall my entire portfolio is positively geared, yielding over 12 per cent.”

As an investor committed to the long term, Kirkland believes in treating his tenants well. “Not only will they stay longer, but they will also look after the property,” he says.

He sends them grocery vouchers every Christmas and completes repairs as quickly as possible. And with his new build he has spent an extra $10,000 getting decent pantry and laundry shelving, a bigger dining room and extra outdoor concrete. The tenants recently offered to buy the property because they love it so much. “I decided not to sell as this did not fit with my investment plan, and I would have been caught by the bright-line test.”

Kirkland has now decided, after 21 years in the army, it’s time to change career. He is about to start work as a mortgage adviser in Christchurch for the Mortgage Supply Company.

And he says that long term, property investment will give him more options and freedom of choice.

“It’s not a get-rich-quick scheme. I’ve taken calculated risks, stayed invested through good times and bad, and have not taken more risk than required to achieve my goals. If it’s keeping you up at night, then you’re probably taking more risk than you should be.”

Kirkland's Top Tips

• I have a line of credit in my finance structure. This has allowed me to pay for unexpected repairs, Healthy Homes upgrades, renovations and even house deposits without going back to the bank to ask for more lending.
• I use a revolving credit facility as a line of credit. I’ve also used revolving credit as a mortgage busting strategy to quickly reduce debt and therefore the amount of interest I would have paid over the long term.
• Use professionals. Kiwis like to DIY, but I recommend paying for specialists in property management, mortgage advice, insurance and tradies. I pay for a good accountant, and the money I save through tax efficient structures far outweighs the cost.