Karuah is an old town and shithole... don't go there lol
Yhe newer part of Raymond Terrace called Lakeside (next to the dam! lol) has RAAF houses in it. Even my place used to be owned by the RAAF for their own employees til I bought it about 12 yrs ago.
RT has got a large shopping centre and a small one, all sorts of businesses, mall, etc. Basically what you would expect for a large town. Emergency services include Local Area Command police station, fire station, ambulance, council, motor registry, centrelink, medicare, doctors, pool, ten pin bowling, churches, 2 Maccas, 1 Hungry Jacks, 1 KFC, a new Masters (like Bunnings) is currently being built. Mate, you name it Its got basically everything you need so you don't have to travel far. Plus the highway is right next to it so within a couple of minutes you can be on the highway or 10-15 minutes from the Sydney/Newcastle Freeway (M1 Motorway) The Hunter river also runs along side RT if you like boating or water skiiing. Has sporting fields and courts too.
Medowie is another suburb near the RAAF base and it has good size properties and nice houses in some areas, but not much doing for recreation or shopping centres and business. People usually drive to R/T to do their shopping.
Riverview Ridge just north of RTis a pretty good place actually. It has newer type brick homes and a little classier than the surrounding suburbs. Its only 2 mins from RT centre so you can get to the essentials easy.
The Highway cuts straight through RT. If you're going to check places out at RT, check the ones on the eastern side of the highway, not the older western side.
All these suburbs are within 10 mins from the RAAF base.
Then as Mikey said, you could go north of the base to Salt Ash, Lemon Tree Passage, Tanilba Bay, but they are pretty secluded suburbs and not much doing there. Their crime rate is worse because of it too.
Further north you also have Nelson Bay, Shoal Bay, Soldiers Point and so on. That's a nice area to live in and the touristy part of Port Stephens. Its expensive living there but hey, it depends on your lifestyle