You can buy 2 bedder unit in almost all suburbs in the east and inner west; let alone in the west and south. If you are aiming at a house, probably you will end up in some of the least-desirable suburbs in Sydney (http://smh.domain.com.au/real-es ... 20110311-1br6n.html)
You actually have too many choices. You really need to make a prioritized list of selection criteria and cut down your search range to several.
If you really cannot make up your mind, with your budget, buying a old 2 bedder in an established suburb is almost always the safest choice, if not the best.