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Having traveled Munich extensively on foot, bike, bus, tram, underground both day and night, it's rare to experience any big problems. You might be harassed by some drunk folks at times (Oktoberfest!), and sure, there is some pickpocketing, but it's really all very low level. While racist incidents do occur, they are rare in Munich. Honestly, this town is so safe that it is to the brink of boring. Of course it is not a no-crime city, but anyone coming for a visit would be extremely unlucky to encounter any.
Just make sure that you don't walk on the bicycle paths (these are the part of the pavement nearest the road); the bikers round here are quite rude and are a major peril to both locals and tourists! The bike paths are for bikers not pedestrians. If you hear a bicycle horn, get out of the way because you are in the middle of their Territory.
Do not jay-walk. Do not be surprised if you are grabbed suddenly by a policeman if you cross the road when the red light is showing. The Munich police take this very seriously indeed. And if you're unfortunate to be knocked over by a car while jay-walking, do not expect sympathy and do expect to pay for any damage to the car!
Another important rule to follow is to always stand on the right side of the escalators in the underground. The left side of the escalators are reserved for people in hurry and they will make rude comments if you stand in their way.
One of a very few cities in the world which are safe and traveller friendly. People are very helpful and the maps in bus and train stations are excellent. As long as you follow the rules you will find people in Munich and everywhere else in Germany are very kind and helpful. If you are arrogant and rude, they will respond in kind.
There IS a red light district to the south of the Hauptbahnhof. It has a couple of adult shops, and a couple of girlie bars, but frankly nothing you would notice out of the ordinary. There are Turkish kebab shops here too. Not a place where you will see druggies, or kerb crawlers. Your maiden aunt would not feel concerned and you would not have awkward questions from your kids.