Buy in Syney or Melb?

Hi everyone. So I'm in a bit of a dilemma and would love to advice from the experienced folk. So we currently have about 50k savings (from the last few months) and waiting on about 250k as a gift from inheritance in a month's time. Our combined income is around 180k and the bank has approved us for a maximum of a 1.1 million loan.

My family and friends are based in Western Syndey, but I have good childhood friends in Melbourne. My family would like me to buy our PPOR in Sydney so that we can live close to them. The only issue is the mortgage, our dram location close to community is something like Auburn, Granville, Regents Park etc. We are only looking at landed properties at least 400sqm.

Worry is we will have to spend the next decade or more paying off this huge mortgage. Given that we have been given this gift, are we using it wisely?

The other option is to a new property in Melb for around 700k and a lot less stress but we will miss our family.

We have been advised that if we don't get on the Sydney boat now, we will miss it forever as the prices are just going to keep getting higher.

I did consider investing in booming suburbs but I'm worried that i would get too stresed out managing them and end up losing money due to bad decisions. Seems easier to just buy a ppor in a good location and settle down. What would you do if you were in my situation?

Thanks. :-)