Mount Warrigal, NSW 2528

Beautiful area with some amazing views of the escarpment, the lake and the ocean. We could see the whales going by from the living room at the top of the hill. An easy, convenient place to live, with the massive Shellharbour Mall (with an Aldi, Coles and Woolworths) five minutes away (and smaller local shops are closer).
Killalea with its legendary surf beaches is less than 20 min away. Plenty of stunning nature within easy reach, if that's what you like.
Shellharbour hospital and good medical centres (with radiology, pathology and specialists) are just over the hill. The Primary School (I'm told by family) is good. And if you need more, Wollongong is only half an hour away.
Houses close to the lake can be affected by smells when the lake is weedy and some areas (eg Warilla, Albion Park Rail, Haywards Bay) are flood-prone. Good breezes further up the hill, so that's not an issue there.
There's a peaceful reserve (a rainforest remnant) at the top of the hill away from the nursing home.
Better value than Shellharbour itself and many areas around Wollongong. It's still close to the Shellharbour ocean pool (and the fish and chip shops in the Village). Great value less than 2 hours drive from Sydney airport or get the train to from Albion Park. The mix of cultures makes it a good place for everybody.