Block: To sell or not to sell that is the question

Hello everyone

I have a little predicament. I bought a house in north east of Adelaide cbd about 15kms out with my sister at the age of 21 in 2004 for $205,000. In 2005 the house unfortunately burnt down due to an electrical fault. Once the insurance was paid out we had a total of 60 thousand dollars left on the loan.

Since then I have been trying to sell the block valued at $150,000 but because the block is situated on a main road and sub dividable only with 2 two bedroom houses only with council and Transport SA approval.  It is been nearly 2 years that it has been sitting there untouched.

At the moment it is under contract to a developer subject to the approval for only $120,000. This contract has been active since the end of December 2006 and I just found out that it will be another 8 weeks until a definite answer on the approvals are issued.

Since then I have used $20,000 equity for personal things and moving interstate (the Gold Coast is great). My sister also has used $20,000 to buy a house she currently lives in.

On the valued block that leaves a total of $50,000 dollars of equity left.

My question is whether or not to sell the block at a cheap price just to get rid of it or use the remanding equity to purchase another investment property even though the block is costing me money to keep.

Thanks Savvy