I choose good.
Good has a very interesting and strong faction in Eriador that's easy to get to (Rangers of the North). Also, I enjoy roleplay-style gameplay with visiting Bree and Rivendell.
Gondor is also a great faction, though a bit far. Lots of land, good armour, both civilian and soldier NPCs in plenty
Elves are also interesting, and Dwarves are great if you need strong tools and armour.
On the other hand...
Mordor is pretty boring to live in (in my opinion, I have lived there and it sucked. Only structures are orc camps and black uruk fortresses. Not very nice to live in. Also, I can't make a comfortable-looking house there.)
Harad is pretty varied and decent, but I personally don't really like Harad, and they are quite far away.
Dunland would be interesting to live in maybe, but their entire life is based on taking revenge on Rohan, which isn't really too interesting.
Isengard looks like a desolate wasteland- I don't wanna live there.
Rhudel is pretty cool, but again is quite far away.