Is there ONE key that will make the difference to your Investment Property?

There are so many things to consider when you are buying an investment property, is there any one 'thing' that will make the difference?

Yes, by far and away it's location. But which location is best?

It obviously depends on where your property is located e.g. rural vs city etc. But if you were going to buy an investment property in a city such as Melbourne, Sydney or Perth, buying as close as possible to the CBD makes sense.

Why?

The majority of people want to live close to where they work and play. This usually translates to where there is employment, entertainment, transport and education. Most cities therefore, layout their city with these amenities close to the heart of the city. It would make sense then if you want to maximize your ability to rent out your property, and to earn capital gains, being within a 25 km radius of these convienences makes sense.

This is not to say that there are not other satellite CBDs which would also enjoy the benefits of capital gains and long term rental appeal, but as a general rule, having a rental property within 25 km of your main CBD is a safe bet.

Why is that? People value their time and the closer people live to the areas that they frequent the most, the happier (generally) they are. 

Looking at Sydney, you can see very clearly that buying as close as possible to the CBD makes sense.

Suburbs within 0-5km of the Sydney CBD has a median price over $1m

Suburbs within 20-25km of the Sydney CBD: has a median price above $750k

Source

Do you your investment properties fall within 25kms of the CBD? If not why?