I was thinking of the bayside suburbs, in the south east. eg from Chelsea to Cheltemham-ish. Any further up towards the city and its too expensive for me.
I would also recommend Seaford.
You can find houses only a few hundred metres from the beach (east from the train line) there in the mid $300,000s that are old with good reno potential and will be good for capital gains.
You will need to be quick as prices have jumped up alot there recently.