We got the train back to the city yesterday and booked into our new hostel which we had booked because we had a "free night" voucher. When we were checking in aparantly the voucher had terms and we had to stay four nights to get the night free. We didn't budge and reluctently the receptionist gave us the deal.
The district we are staying in is the main student area and reminds us of Camden Town in London, lots of bohemian shops and plenty of cafes and restaurants. Unfortunately it's quite a way out and ended up costing us quite a bit on the bus to get back into the city. We got off the bus at Circular Quay as we were getting the boat to Manly. After half an hour we arrived and headed straight to the beach for a picnic.