As each part of Munich has its own particular characteristics, the best thing to do is to make a list of your priorities. Everyone seems to have their own favourites but their priorities might not be yours and they might be on a different income.
Do you like the suburbs? Do you really want a house with a garden? Would you prefer a central location? Do you like living in a flat? Old or new? Where do you have to go to work? Will you be using the car a lot and not want to spend hours per week looking for parking spot? How close to parks and playgrounds?
Here's my brief, and probably contentious, rundown of Munich districts:
Altstadt - little residential space, bits of green, few playgrounds
Glockenbach/Gärtnerplatz - supposedly the gay quarter, but has the highest birthrate in the city, so I've heard. Lots of young, trendy 30something families. Good access to the Isar & its parks.
Schlachthof/Sendling/Westend - more working class areas that are fast becoming trendy, if not yuppified. Not an awful lot of green.
Schwabing - fairly middle class, nice area, residential space is mostly flats, can be quite far to parks if you're not on the
Englischer Garten side.
Lehel - very pleasantly boring bit of Munich, squeezed in between Engl. Garten and the Isar. Flats. Easy access to parks and river. Quite a few families.
Neuhausen/Gern/Nymphenburg - Good areas, mostly flats, quick U-Bahn access to city centre. Good access to parks. Gern is where I really want to live with a family.
Haidhausen/Au/Giesing - on the eastern banks of the
Isar. Mostly flats. Historically working class but
Haidhausen has become very trendy. Good access to parks and river.
Bogenhausen - mostly upper middle class. Very nice property. Lots of green. Boris Becker lived here.
Outer suburbs: Middle class leafy suburbs are often to be found in the south (Solln,
Grünwald, Hadern). Working class areas by reputation are
Hasenbergl or Neuperlach, but you'll find a big mix everywhere with detatched houses close to big estates. The big decision further out is transport: rents are higher closer to the S-Bahn lines and the south is more expensive than the north.
The inner city areas are much more cosmopolitan; the suburbs more conservative. In my experience, if you persist, you can find affordable accommodation, even in the posh areas.