In north sydney. So far I am very impressed. I got a "my-multi" weekly ticket and spent saturday jumping on the ferries. Went up the Parramatta in the morning and then over to Watsons Bay and walked along the cliffs past Macquarie lighthouse. Then eventually back to the apartment when jet-lag kicked in and put me to bed early.
As a first-timer my immediate impression is that if I were young enough to get-in I'd apply for immigration now.

. To be fair I suppose I'd have to skip over to NZ and have look if I were going to emigrate.
I find it a little bit pricey here in the centre of Sydney compared to where I live in Germany but then I don't hang round the city centre there either. Could also be the exchange rate - in trips to the US over the last decade I've seen it swing from being reasonable (first time), to ferociously expensive (middle trips) to fairly cheap (last two) - all driven by the dollar-euro relationship. What struck me in Parawatta (mainly went up for the boat ride not to see any tourist sights) was how the massive shopping complex has pretty much gutted the town town centre.
The quality of bakery goods (I have sweet tooth) and coffee is top class. The quality I've had sofar is better than what I get my region of Germany and that's just walking into the first place I see as opposed to trying to find out which are the best bakeries. Off to some do some more tourism this morning. Will try to get to Kirribilli and Manly to see the sea and boats. Doubt if I'll see any guitars anywhere.
Thanks.