"For us, the natural beauty and historical heritage of the area is unique, but it is the community of Watson's Bay that makes our home even more enjoyable. There is a real sense of familiarity here," says Julie.

The couple, both retired Australian trade commissioners who spent more than 30 years working overseas in Asia, the Pacific, the Middle East and the United States, were drawn to the unique location of Camp Cove and the 100-year-old cottage, which cost $1.1 million in 1998 and which they have been updating over the years.

Now the couple are looking to downsize and move from their four-bedroom, two-bathroom cottage at 4 Victoria St and Ray White Double Bay.

Adam Reichman of 4 Victoria St and Ray White Double Bay and Alex Lyons of Raine & Horne Double Bay have set a guide of $7.3 million for the May 18 sale.

The best thing about this house is its proximity to the beach - only 150 metres away - and I like the way it backs onto the conservation area", said Reichman.

Today, the two-storey house, built by shipwrights in the 1920s, has plenty of old-world charm combined with modern features.

There is space for entertaining on both floors and a flexible layout to suit all stages of the family.

The entrance level has a skylight kitchen with Miele appliances and a combined lounge and dining area which leads out onto a large terrace overlooking the private leafy garden.

This main living level also features a formal lounge with fireplace and integrated bookshelves, a full bathroom and a magnificent second bedroom or home office with even more built-in cupboards.

Upstairs, two additional bedrooms share another full bathroom and another family room leads to a spacious covered deck which extends out to the private leafy garden. This personal oasis is filled with mature plants and shady trees and leads directly to the park through the back door.

'Directly opposite Camp Cove Reserve,' says Roger." Here stand two magnificent, 150-year-old Morton's Bay figs, over 50 metres high."

During their stay, the Baylisses renovated the kitchen and bathrooms, added dressing rooms, installed solar panels Tesla batteries, garden watering and lighting, and a new central air conditioning and heating system.

The age-old cottage is within walking distance of Watson's Bay for dining, the harbour beach and the local ferry.