We were a party of six adult friends and one kid that stayed at Rick's wonderful house for a short week, and we couldn't have had a better time! Bondi Beach is a wonderful place to stay away from the city but still in the vicinity of it. Friendly people, wonderful cafés, bars, and restaurants, clean and beautiful.
Don't miss taking bus 380 (just around the corner from the house) to Watson's Bay and then the public ferry into town for a breathtaking view of Sydney (just tap your credit card for tickets). I would also recommend getting up early in the morning to catch the sunrise over the Pacific and then have a morning dip and a coffee at Bru's or Speedos. If just laying at the beach for a day isn't your thing you should take a walk to Coogee Beach following a beautiful 6k path along the sea.