If you want surf then the best places are: Torquay, some parts of Western Port and Mornington Peninsula, Phillip Island, and stretching it out you could include Inverloch and Sandy Point.
All those places are 1.5+ hours from the city.
You can get "surfable" chop on Pt Phillip Bay in 25+ knot W/SW, or head to the south end of the bay for bay waves in northerlies.
The summer sea breezes are always stronger at the north end of the bay so if you want to sail you get much better odds for bump and jump up near the city.
Normally Melbourne seabreezes rock! I found them much stronger and more reliable than the Perth sea breezes. Last year we got almost none at all.

Normally we get seabreezes from October on. Still none so far.

On the plus side we have had heaps of northerlies. (I have just had 5 days sailing in a row [with a kite

] and could be sailing today if I could be bothered.)
If you are after relatively cheap you could live in Cranbourne, then you are well placed to zip down to all the east coast spots. You have to drive everywhere. It has an undeserved bad reputation. Most people I know who live there are cashed up tradies with big houses, new 4WD and swimming pools.
Frankston is not a bad place. The beach is lovely and the proximity to Western Port and the Peninsula is pretty good.
I did some house sitting last summer at a house on the hill. It had views of the bay and the city and plenty of bush land around it.
Ultimately I did not like it. If you live on the hill you have to drive everywhere and the bay is not convenient. I live in a bayside suburb so I can normally be at a good beach within minutes. Frankston is too far south for good seabreezes and beach access is a little dodgey with either foreshore bush or houses taking the prime spots.