Gunna,
I think a very simple maxim to go by is, 'buy as close to the CBD as you can afford', or alternatively, 'buy as close to water as you can afford (proximity to services, CBD and leisure are also important here).
I"m sure that if you look at capital growth you will notice that there is an inverse relation between distance from the CBD and cap growth. A similar pattern will be found in terms of distance and cap growth for properties by the sea. And this inverse relation holds pretty much true over time.
However, these days with masses of apartments being built in the CBD, there is a lot of competition for the rental market. Best to stick to houses. But then, I'm biased .
Desto.