Hey, It's good to see that you made it down here.
Staying with a friend is a great way to save money but it can be a lonely introduction to Australia. However staying in a hostel may cost you more and not be such nice accommodation but it is usually in an interesting part of town and you'll be staying with a bunch of other people in the same situation as yourself, after a few days you will have made loads of new friends and you'll have the time of your life.
My guess is that like most people in Sydney, your friend lives in a fairly boring suburb away from the beaches and the city centre. It's not such a great introduction to Australia. Visit somewhere like the city centre, an inner-city neighbourhood like Glebe or Paddington or one of the beaches each day until you get a job. Once you get a job you'll probably make a group of friends from work, although generally you will get on better with a group of other backpackers. Once you have found a job it would be a good idea to move into a hostel or a shared house with other backpackers.
If you have a job and have moved in with other backpackers and you're still not having fun then move to another city. Australia is a big country, but there is more to Australia than Sydney. Go to another big city like Melbourne, Brisbane or the Gold Coast and start over and see if it is more fun the second time around. Sydney is a great city but a lot depends on the bunch of people you're working and living with - if you don't have the right mix of people sometimes it's a good idea to try somewhere else.
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