Newcastle and Lake Macquarie are very nice. Beaches and Lake close proximity, Hunter valley and vineyards nearby. Plenty of good suburbs/areas to choose from. Floraville, Eleebana, Warners Bay, Cameron Park, Fletcher to name a few. There are pockets of rough areas in Newcastle but everywhere else more than compensates. Personally I think its a great place to live and there are heaps for children from various sporting activities to the usual indoor & outdoor activities which a great all year round climate can provide. I don't subscribe to this my town is better than yours jibing as peoples experiences and opinion are subjective, but like many places across Oz I reckon you will enjoy this part of the world and all it has to offer (and of course Sydney is only 2 hours down the road - great for a day trip or weekend).