If a new build buy-to-let property investment in London just breaks even, is it still worth investing in for a potential capital gain in the next five years?

Arthur Weller replies:
This is not a tax question, rather an investment question. Having said that, you need to consider what else you could do with your money (opportunity cost) versus the potential five-year capital gain on this property, less the capital gains tax that will be payable when the property is sold (additionally, consider all the effort involved in renting out the property for five years, unless, perhaps, your 'break even’ calculations assume a managing agent will have responsibility for renting out the property).