Take my advice and stay out of Sydney unless you like Muslims.
Canberra is the capitol and beautiful, but very cold. I would recommend Perth or Brisbane.
Brisbane is the best, next to the Gold Coast and North Coast tourist areas and probably the safest city in Australia. A house can go from around 300,000 upwards. I would suggest a good brick two level that will cost just under the 500,000. But keep in mind the Aussie dollar is volatile. Right now its too high, but when it drops it goes freefall and you can turn that 500,000 into 800,000 and buy two houses.
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