Jason,
I spent most of my adult life growing up in Sydney. I left there in '03 to move to the UK and will be going back with my husband next year (hopefully). Saying that though, I
won't be going back to Sydney.
The big reasons for me/us is the cost of living. We were back there in April this year for a holiday and I must admit, even though I'd only been away for about 18 months at that stage, the expense SHOCKED me. I have friends and family living in Sydney also whom own property - they've all been telling me it's hit an absolute slump.......
To justify living there, I would only be comfortable if I was earning $80K+....(This is approx £35K)......I know this can sound easy as the comparison to sterling is a possibility here BUT - the average wages in Sydney can be from $40-$45K (yep nearly half that £35K - not much eh?).
We are planning to make the move to Melbourne. I think the main thing I'll struggle with is the lack of beaches (surf)......I absolutely loved getting up in a morning (weekday or weekend) and going down for a quick dip. There is nothing that is that refreshing. Followed by some lovely breakfast at a cafe on the beach wrapped in your towel with sand in between your toes (ahhhhh).
Newtown - not too sure about. Personally I would NOT live around there. I grew up on the North shore of Sydney, so a bit spoilt in the aesthetic department there. I believe the prices for houses/flats etc would have sky-rocketed since you were last there.
A great website to check out on rentals/buying in Australia is:
www.domain.com.au
Hope this helps,
Sarah :)