Depending on far you want to travel and for how long will depend on where to live.
As an original Sydneysider, well out tnear Penrith, If you are prepared for a 1 to 1 1/2 hour commute the Lower Blue Mountains is a pretty good place to live, having grown up in Glenbrook I would be a bit biased.
Rents seem to still be affordable for a 3 bedroom place with garage and the lifestyle is pretty good, far enough from the city to be away, but close enough to get there for work.
If I was retruning to Sydney I would look at the Lower Mountains as an affordable choice, or Northern Beaches as a money no object Choice.
You could also look at the Shire, or a bit further South down around the Northern Illawarra, such as Bulli, Thirroul, though I haven't been down that way for a few years, so the areas might have changed sinced I lived there for a summer on the beach.