We now have to display a sign on the site for two months to give people the right to object. If no one objects we could start building in as little as two months, assuming we can sort out everything else by then. If someone does object then we could end up in some sort of tribunal. I'm not too sure how this works but hopefully it won't come to that.
The letter I got says that failure to display the sign properly could get you a 1500 EUR fine. We will need the time to sort out everything else so no chance of starting work before two months have passed anyway.
These two things alone would be enough to make me go and try to make money elsewhere in some other way. I think you're taking on an insane amount of risk with this project.
Not really. Welcome to Europe. It's pretty much like this all around.
It seems OP is in France but Portugal is the same, and I bet Spain and Italy the same.
You always need to "announce" and put it in display your intentions so anyone can object.
For example also, when you sign contract of promisory note for the sale of house, you need to give 15 days before closing, because the borough has option rights to the land - this enables someone to match the offer and they have the right to buy it off of you instead of the actual buyer. If you don't wait the 14 days, the contract can be null and you are in a world of trouble - especially the buyer.
I've been exploring the options around mortgages and hit a decision point. I'm not sure if this is a uniquely french thing but our mortgage provider has told us that mortage insurance is obligatory. It turns out that in france you have to take out an insurance policy that pays out in the event of death or incapacity to cover the remainder of the mortgage. If you're a couple then you have the option to take out 50% each or 100% each. You also have some options around the degree of incapacity that would trigger a payout.
It seems a little bit murky to me becuase, as far as I the bank that is lending you the mortgage expects you to take out the insurance with whoever they suggest. So there is a bit of a smell that they lure you in with a cheap interest rate and then try an screw you with an expensive life insurance product. Legally, they cant compell you to use their provider but they don't have to offer the same rate if you don't so there's a general sense that if you try and shop around then things will be much more complicated for you and your loan will not get approved. Mortgage approvals here are much more old fashioned with an indvidual decision made by the local bank manager rather than a centralised system so there's lots of scope for holding things up if you don't take their insurance.
This raises several questions for me. 1) I've never really thought about life insurance but I have a young kid and I can certainly see the appeal of knowing that even in the event of disaster our housing costs would be met. I really hate the fact that I'm being forced to take out an insurance product without much choice and that I will be locked in to paying for something that hopefully I'll never use. Up till now I've always taken the view that having nothing but the absolute minimum insurance is a key part of being able to save money.
2.) If I try and think through scenarios it's hard to compare the value of protecting my family from being destitute after my untimely death with a monthly payment. How exactly are you supposed to weigh up these two things? If we go for the maximum (both of us insured at 100% of mortgage value) we're pretty secure, but paying a significant monthly payment which could otherwise be going into savings.
3.) Saving for FIRE is a lot like you're own personal insurance policy. By my calculations we're probably around 50% to a fairly modest version of FIRE. Over the next 10 years I expect we'll get there unless we really cut back on work or embark on some pretty serious lifestyle inflation. This means that any insurance we took out would start being pretty valuable, but in around 10 years time it wouldn't make too much difference as we'd be relatively close to FI anyway.
After some reflection I'm leaning towards taking the 50% each insurance. Any thoughts?
Yes life insurance is mandatory for at least one of the co signers of loan. Go with the insurer they provide, you can transfer it away later easily without implication to your rates.
Also, and this is something a lot of people forget, call the insurance company EVERY YEAR to update the principal insured. They don't update this most times. Say, you started with a 300K mortgage then that is what you are insured with, however, 5 years later you only have 200K owed. Make sure to call and tell them to insure only 200K instead of 300K.
Also, do not forget to inspect everything! If this is typical mediterranean construction, make sure all the foundation is insulated from ground. Concrete acts as a wick, you don't want condensation forming through capillary action.
Also, most construction is done with concrete and really thick brick ... the construction workers then in order to fit utilities they open trenches in the brick for electrical and plumbing and then mortar on top.
If it's on your budget don't do this. Yes have the whole brick house, however I would then put some studs, probably steel framing since it's cheaper, and have everything else built with drywall. It gives you an easier time in the future for possible updates and or repairs. Don't forgo insulation as well. XPS or mineral wool on the outside works great in order to take advantage of the mass provided by the concrete.