First project, mining town (Muswellbrook), advice needed!

Hi everyone,

                      I am 23 years old and currently living in Muswellbrook, NSW. I am originally from Brisbane but have moved here to work in the mines. I have purchased a block of land in a very good area of town in a new estate. I purchased the block for $150k (I secured it with a 5% deposit in June last year and it settled late February) and land in that area has increased in value around $15k based on a block that was sold in the same street as mine after settlement recently. I am planning to build a 4 bedroom, 2 bathroom double lock up garage home on my block of 903m2. 

My original plan was to build the house and furnish it as when I first took the house off the market supply was low and demand was high for this sort of dwelling. Rents were $700-$900 for furnished houses, my mortgage broker was renting hers for $900. So I believed this was a very worthwhile first project for myself. However things have slowed up in the mines of late, and supply is higher now and demand is low, especially for the furnished houses. On advice of a real estate they believe furnishing is not the way to go now, and I am looking at getting rent of anywhere between $420-$500 for my house once built. As this is my first investment my loan will be at 95% making my repayments for my build approx $645 p/w I & P or $536 Int only. Meaning it is likely to be negative geared (which I was not planning on to begin).

I guess my question is given the current economic climate is this investment worthy of going ahead with the build? Some people I talk to believe things in this area will pick up in 6 months and the election could play a major factor in this. I would like to stick to my guns and continue with the build but also would appreciate advice on the risk that may be involved and doing this, especially since I don't really want to negative gear my property and after this I would like to take on a renovation in Brisbane. I was planning on building this, keeping for a year and possibly selling after owning it for a year after I have accrued some equity and in the hope house prices do in fact rise it could give me some cash to start renovations. 

I understand my explanation and question is long winded but wanted to provide as much necessary information as possible. I would appreciate any advice on my current situation and how to better it as this may be the biggest decision I make in my life at the moment and much of what I have learnt about property (which is much for a 23 year old but little in the big scheme of things) is through self education.

Thank You.