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I found this thread very helpful when I first started looking for a good spot for my village
https://steamcommunity.com/app/1129580/discussions/0/2930112548439176761/
Mines can be built in caves in two places on the map, but there is little room for buildings, no reeds and no fish.
If you need to mine ore, you can build a warehouse and houses for miners near the mine.
Maybe not the best place, but it is quite scenic. I think my villagers like it
I settled near water (of course) and some flat open areas to build on... also near enough to the main village to make travel to it not so painful as I assumed I'd be traveling there a lot. The only thing I wish is that there were a clay pit and a mine nearby, but the mines are generally not anywhere near the starting village, so pick your poison. There is a clay pit nearby to the starting village though, I just didn't build that close.
I also build in a location that is somewhat central to all the NPC villages so it wasn't too far to travel to each for questing and vendor access... that makes a big difference when you're walking. Having a horse makes a HUGE difference.
Essentially, just look for a spot that has a lot of the resources you're going to need....
Water, Trees, flat open space, Reeds, preferably a clay pit nearby. Don't build right on top of a location where a lot of wild animals spawn, but it could be helpful to have wild animal spawns nearby.
I think the spot where the steam meets the river north east of Donica is a really good spot as it has most of these features plus a little island for your fishing enterprise as a bonus. There are plenty of deer that spawn near there and not many wild animals that will kill you.
We're neighbours. I'm 12 years into a village on the western shore of that lake. =)
I think it's a great spot. All three types of tree are common there, which in autumn looks freaking amazing. Loads of space. Central to the NPC villages.
I do wish it was along the NPC travellers routes though.
Planning spots for my second village lately..
There is a bridge to get to the north side easily, it's close to 4-5 villages including gostovia so the location makes it easy to get about anywhere (there is even a road leading to hornica.
It is relatively close to 2 spots of clay, there are directly south, the forest is full of maple trees (the ones that give 4 logs), there are reeds a very short distance west (the harvestable ones, not the fully grown ones that are closer), all of the animal types are fairly close without spawning on top of you and two mines are close enough to go there regularly (I prefer the one up north because there are no bears guarding it).
And of course it's pretty much all flat, with existing roads that you can include in your village or not.
That's the spot I ended up using after spending quite a bit of time looking around since the spots the various guides give were not quite to my taste for my first real go at the game.
It's better to make more houses for single people at least until you are situated well enough to be able to aford having less hands working.