Default Values
This page documents the default values used by mortgage-cli when no profile overrides are specified.
French Property Investment Defaults
The default profile is configured for typical French rental property investments:
Mortgage Terms
| Parameter | Default | Notes |
|---|---|---|
| Interest Rate | 4.0% | Typical French mortgage rate (2024) |
| Insurance Rate | 0.4% | Mandatory mortgage insurance |
| Duration | 20 years | Standard term |
| Down Payment | 20% | Minimum typically required |
Monthly Costs
| Cost | Default | Notes |
|---|---|---|
| Property Tax | €100 | Taxe foncière, varies by location |
| Insurance | €30 | Building/contents insurance |
| Maintenance | €50 | Reserve for repairs |
| Management | €0 | Self-managed by default |
Purchase Costs
| Cost | Default | Type |
|---|---|---|
| Notary/Legal | 1.5% | Percentage of price |
| Bank Arrangement | 1.0% | Percentage of price |
| Survey/Valuation | €750 | Fixed amount |
| Mortgage Broker | €0 | Fixed amount |
Budget
| Parameter | Default | Notes |
|---|---|---|
| Total Available | €50,000 | Available capital for investment |
| Target Rent | €1,000 | Monthly rent target |
Verdict Thresholds
| Verdict | Condition |
|---|---|
| GREEN | Break-even rent < 90% of target |
| YELLOW | Break-even rent < 100% of target |
| RED | Break-even rent ≥ 100% of target |
Calculation Formulas
Monthly Mortgage Payment
Uses the standard PMT (Payment) formula:
Monthly Payment = Principal × (r × (1 + r)^n) / ((1 + r)^n - 1)
Where:
r = (interest_rate + insurance_rate) / 12
n = duration_years × 12
Principal = price × (1 - down_payment)
Break-even Rent
Break-even = Monthly Mortgage Payment + Monthly Costs Total
Cash-on-Cash Return
Annual Cash Flow = (Expected Rent - Break-even Rent) × 12
Cash-on-Cash = Annual Cash Flow / Total Upfront Costs
Upfront Costs
Total Upfront = Down Payment + Sum of All Purchase Costs
Overriding Defaults
Per-Command Override
Use the --down flag to override the down payment:
mortgage-cli analyze --price 150000 --rent 900 --down 30%
Profile Override
Create a custom profile with different defaults:
mortgage-cli profile create conservative --base default
# Then edit ~/.config/mortgage-cli/profiles/conservative.yaml
Regional Considerations
Paris vs Provinces
Paris typically has:
- Higher property prices
- Higher rents (but lower yield %)
- Lower property tax per sqm
- More need for professional management
New vs Old Buildings
Older buildings typically have:
- Lower purchase prices
- Higher maintenance costs
- Potentially higher notary fees
- More renovation risk
Adjust your profile's maintenance cost accordingly.