We had a great stay at Kyra's place in Dunedin. It's a beautiful town and a convenient place to stay for visiting Milford Sound. The place itself comes with plenty of thoughtful amenities. There was a stocked Nestle coffee machine, ping pong table, kids' games, mountain bikes, and a BBQ. Even though we visited during the winter (August), we got enough of a clearing in the weather to take a nice ride around the nearby lake and to grill some steaks on the BBQ (local butcher shop and grocery markets conveniently located nearby).
The town itself is small, but has lots of nice restaurants. Things do seem to shut down early at night though (in August, anyways). So if you drive in late like we did, expect that the grocery market, gas station, and most of the restaurants are closed by 8pm.