NSW FHB Melbourne/Sydney for below 800k

Hello,
I am new to the market and need your sound advice where to buy our FHB in the current market situations.
I am single household income earner, with very little savings of around 60k and have around 900k pre approval loan, currently renting on 3000 per month. Is it the right time to enter into the market now for FHB , to grab some good negotiation deals.
I currently live in Sydney upper north St Ives, but can migrate to Melbourne with the same company I work.We like Sydney weather, St Ives suburb, the school our daughter goes to, neighbourhood however beyond our dream to own a house here and also feel we are paying more for rent and not able to save much.
With our financial scenario and little savings, we find it difficult to enter Sydney market with our budget in good suburbs.
The other option we are thinking is to migrate to Melbourne and buy home for 750k there not extending ourselves to maximum borrowing capacity as
We dont want our EMI to be more than $3500 per month .
The only reason we are thinking of Melbourne is we feel we can get a house in a good deal there.
Can any experts here please advice whether moving to Mel would be right just to buy a house or any chance we can get good home in Sydney itself for our price point when the market cools down more.
We are also open to buy an investment anywhere in Australia instead of FHB if we can A grade investment property in that price point with good rental yield.

Our goal is mainly appreciation / capital growth.
Thanks in advance!