At first we weren't sure if staying on this side of the river would be a good idea, but it turned out to be absolutely perfect. The views from the park inspired us when we arrived the first night, and walking across the bridge to get to the old town was such a magical experience. One day we didn't even make it across the river as we had brunch and a tour of the port wine warehouses in Gaia on this side of the river, but then had to take the cable car back up the hill after a few too many drinks ;)
The next street has everything you'd need (atm, supermarket, pizza restaurant, pharmacy), and a tram stops just 50 meters from the house which takes you across to downtown if you don't feel like walking (but we always walked).
The host was great and met us at the apartment even though it wasn't necessary, but he wanted to make sure we had everything we needed (including a port wine "welcome" gift). And we did.
Loved our stay here and would gladly return.