Purchased mid 07 inner west sydney (Balmain area $370's, around...

Purchased mid 07 inner west sydney (Balmain area $370's, around 90% lvr) as owner occ (with intention to turn into inv and for long term cap growth.) Interest rates increased as we all know but property held value. Lived in for 12mos to get FHOG etc. July 08 turned into investment getting $430p/w, with int rates around 9% was highly neg geared. Fast fwd to now, property valued yesterday at $410k and have increased rent early next year to $460p/w and about to refinance at 6.5% with rates to fall further. My prop will become almost positively geared.

Not worried about the short term swings etc.. however i've read that +ve geared properties usually have less cap growth. Hey i'm happy with extra $ in my pocket each month but also believe it's a good investment long term (5 mins to CBD, on the water etc..)and i bought for cap growth long term. Experts always say you can't have both ie. postive gearing and cap growth, or can we?

Is it just the current market we are in?
Am i looking too short term and will even itself out?
Any thoughts?