There's an almost automatic reaction from Brazilian buyers looking at a listing: "this one has a $600 HOA, I don't want it." The episode devotes a segment to showing why that math, done that way, is usually wrong.

"When you start counting all the costs that come with a house, suddenly that HOA doesn't seem so expensive." — excerpt from the episode

What the fee usually covers

The items raised in the conversation are the ones that carry the most weight:

• Structure insurance — in many condos, the association's policy covers the building; in a house, that cost falls entirely on the owner.
• Landscaping and gardening — including water used on common areas, no small item in California.
• Exterior maintenance — facade painting and, in many cases, the roof. The episode uses the example of a new roof: in a house, that's a standalone expense that can run into the tens of thousands of dollars.
• Recreational areas — pool, gym, courts, where they exist.

The water example cited on the show is illustrative: someone with their own yard in the area can spend $100 to $200 a month on water alone, while a resident of a condo with shared landscaping pays a fraction of that on their individual bill.

How to really compare

The method that comes up in the episode is simple and works: build two columns with the same line items. For each property, add up:

• mortgage payment;
• property tax (including special neighborhood assessments, if any);
• insurance — unit-level in a condo, full coverage in a house;
• water, landscaping, and exterior maintenance;
• reserve for major work — roof, paint, water heater;
• HOA fee, when applicable.

Only then are the two numbers comparable. Not infrequently, the episode concludes, the property with the fee ends up the same or cheaper — with the added advantage of turning unpredictable expenses into a fixed monthly bill.

The flip side: what the fee costs on financing

There's an effect the agents mention that needs to be clear: the monthly fee counts toward the debt-to-income calculation the lender uses to approve the loan. A $600 fee reduces how much the buyer can finance — which explains why some people prefer to pay a bit more for a house with no HOA.

The choice, then, isn't just about cost — it's about buying power. And the decision shifts depending on income, available down payment, and the type of property desired.

What to check before signing

• Exactly what the fee includes — ask for the list, not the other agent's impression.
• The reserve fund: an association with a low reserve tends to resort to a special assessment, which can run to thousands of dollars all at once.
• The reserve study and minutes from recent meetings — that's where upcoming projects and litigation show up.
• The rules: pets, short-term rentals, number of units that can be rented out, interior renovations.
• The fee's increase history over recent years.

In California, the seller is required to hand the buyer a set of association documents before closing. That package exists to be read — it's the difference between a fee that makes sense and an expensive surprise in year two.

Sources and verification

• Davis-Stirling Common Interest Development Act (California Civil Code) — homeowners association obligations, document disclosure to buyers, reserve studies, and special assessments.
• Consumer Financial Protection Bureau — inclusion of HOA fees in debt-to-income calculations for credit underwriting.
• Water, landscaping, and roofing cost examples and the item-by-item comparison: agents on the episode (April 2026).
• Transcript of episode 7 of the Cadê Moradia podcast.

Watch this part of the episode:

HOA: when the higher fee ends up cheaper (approximate excerpt) — starting at 30:07 · CADÊ BRAZIL