Is Sydneys city train transport expensive?

LoveSydney

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My girlfriend and I are looking for accommodation in Sydney for a year and were wondering whether to stay out west and get a train to the city every other day. Would this be a false economy or would it save us time just spend on a better location. We only have $350pw. Also where is a good place to search stratigically so we can get to the beach most days but not pay premium prices.
 
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