To found a village, a guild must have at least 10 members and do a little bit of prep work before getting started. Founding a village requires a Town Hall Bell, Town Notice Board, Town Flag and Buckets of Paint. The founder will become the mayor as long as he/she is part of the guild and owns a home in the village. You can even create an “open” village, meaning anyone can live there!
With The Villages update to A Mystical Land individual players can become homeowners. Every character will be able to purchase his/her own house for 20 Copper Ore, 20 Iron Ore, 20 Pine and 5000 Gold. You will be given 14 days free rent once your home is constructed, but after that you must begin to pay in order to continue using it. However, if rent is late, you are still allowed to use your garden – so no worries about your beautiful flowers. Just remember to pay on time!
In addition to houses and gardens, players of A Mystical Land will also be able to utilize the new gathering spots in the villages. These will first have to be stocked up before they can be used but once ready to go, you will be able to gather with a lower failure rate. The bigger the village is, the lower the failure rate is.
Source: Game homepage