I've been pouring over flat listings now that I need to move. I prefer to live near the city centre. Not too close but a short walking distance away would be great. Of course Brno is like every other city where prices are more expensive in the centre and become cheaper the further out you go. Here's a map from foreigners.cz of the Brno districts with the English language equivalent. Some of the translations are quite funny.
I wouldn't mind staying in Veveří (Squirrelville) but Žabovřesky (Frogscreams) or Stránice (Hillslope) are possible locations too.
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