Hi Jade
If you follow forecasts by those such as John Edwards from Residex then the Parra region is looking promising, given the planned infrastructure changes as well as the recent change in planning that's seen a height allowance increase (with at least one developer I've heard of stopping dvpt late last year to consider demolition to start again and put in a new DA) - I certainly would pick my areas carefully, as some streets are better than others. I'd also have a look at Westmead, due to the hospital and station setup there.
You could pick up a townhouse in Quakers Hill for your budget, but be prepared to spend time searching and negotiating hard
Good luck with your search and please keep us informed as to how you go!
Thanks Jacque - will also look into parramatta & surrounding areas. I'm a newbie at all this so all input is appreciated!