To give you better suggestions, could you provide more info Verno?
Stuff like what you rate as most important in terms of facilities, shops, housing preferences, even things like restaurants, access to parks, beaches, bus vs. train etc.
Since I'm guessing that you'd like to be involved in something theatre-centric, the best bet would be the inner west or even just south of the CBD, but really you can get to both areas from anywhere as long as you have the patience.
Generally the closer to Sydney, the more you pay, and Sydney gets crazy stupid expensive really quickly. Closer to the city in any direction generally means older townhouses or apartments. However to get larger places means a big rise in travel times and costs.
Don't mean to sound negative about Sydney, but it has terrible public transport for a city of it's size and importance, an ineffective and extensive road network and unaffordable housing market or renters and buyers alike.
Without more information I can't be too specific, but generally you'll be wanting to avoid the northern part of Sydney (North Sydney, Northern Beaches) as they are expensive and not easy to get around with public transport as other areas.
I think the areas you'll find more appealing due to work and travel factors are quite busy due to their closeness to both the CBD and the big universities, but we'll help out as best we can.
Looking For: Wreckers Saga TPB Collection (with Requiem)