Translation:It is nice that I can live in the south.
I find it easy to forget the rules around when to apply conjunctive, hence my following question: how bad is it considered for a native speaker if I say the following:
"Il est agréable que je peux vivre dans le sud".
Is that an "ugly" construction? Or is it more like "it's not entirely correct but I know what you mean" ?
Whether or not someone will bat an eyelash at you dropping the subjunctive in this place would honestly depend on the speaker. It's less commonly dropped than in English (where we entirely forget it exists... "If he was a seabass" vs. "If he were a seabass" probably don't sound all that different to most people). But, newer generations of French speakers are more likely to omit the subjunctive, especially in casual conversation. The context would determine whether the slip would be appropriate or not. In formal company, you might sound a little childish, but most anybody would understand you.