hi all and thanks for your thoughts!!

the loan is a 5 year fixed loan at 7.65%. it expires in july 2012.
break costs are just under 9k for the loan.

I do have a plan. Well it was to acquire one property every 18months or so but alas it has not happened so I got fed up and hence I am travelling to see the world.

I do have a tax depreciation schedule but as I am a low income earner it does not benefit me much. I also dont see myself earning big dollars so negative geared property is no good for my situation. By 2012 the property if I am lucky may become close to neutral gearing… I have to weigh up my options but no one can predict the future I guess!

I am able to hold onto it but am deliberating the opportunity cost of holding it for the next two years and if the unit grows by that much in value. I.e $1000 a month * 2 years = 24 k outlay. Will it be worth atleast 40k in equity by that time? Who knows…

IF it were a house it would give me more hope as they grow stronger in the area as I was told. Also I could renovate, add a room, subdivide or build a new house. With the villa style i can only renovate and its already renovated so no other equity building avenues.

Also Postcodes 2768, 2763 have been flat I believe due to the immense amount of new house and land flooding the area between Parklea and Rouse Hill!! My parents bought in Parklea for 365k in 2001. Their house is now valued at 460k. I believe that is pathetic capital growth so am scared that the investment will grow at snails pace…

Thanks once again for your input. I am taking everything into consideration and do not want to sell in a rush out of frustration and like you say kick myself if i find out it has built some value by 2012.