I like ballarat. I started property investing there 5 or 6 years ago. Cashflow is good, and while the capital growth doesnt knock your socks off every year, there is scope to improve as Melbourne gets less affordable, and regional australia grows.
The main reason I started there, was cause it was all I could afford, and worst case scenario, I could be unemplyed, move in, and still afford the mortgage repayments. I like the price, it means if you have a vacancy, or a problem, it isnt going to break your bank becuase the mortgage is so much less than a more expensive property. Being so close to twon, and being near period homes I think is another plus, as the renovators start to move in (as they have already started too) the areas near the Ballarat CBD might one day look like fitzroy or carlton.
Although you could buy a unit in outer melbourne for the same price, I like Ballarat better, higher yield usually and I think a bigger pool of tenants in once sense, as its in the centre of town.
I think Bendigo is too far from Melbourne, but really what goes for Ballarat goes for Bendigo.
Look closely at the property market, I think you could find an old miners cottage for close to that price rather than a unit.
Good Luck!