Toronto Investors Are Bleeding Cash as Condo Math Turns Against Them
Toronto’s condo “passive income” pitch is cracking. This video claims 81% of investors are losing cash monthly as sales stall, inventory surges, and defaults ripple outward.
Toronto Real Estate
By WBN Global Editorial Staff | January 9, 2026
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Toronto’s condo investment story is flipping in real time—and the transcript behind this video lays out why thousands of everyday Canadians are now carrying properties that lose money every month.
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The speaker frames the crisis as a “negative carry nightmare,” claiming 81% of Toronto condo investors are cash-flow negative. In plain terms: the all-in monthly cost to hold a unit—mortgage payments (now reset at higher rates), rising maintenance fees, taxes, and insurance—has outpaced what landlords can collect in rent. The result, the transcript argues, is an average loss of roughly $600 per month per condo, turning “passive income” into an ongoing financial drain.
The data points in the transcript aim to show this isn’t just a slowdown—it’s a stall. New condo sales are described as collapsing to a 35-year low in Q3 2025, with just 319 new units sold across the quarter. At the same time, inventory has ballooned so dramatically that, at the current pace, it would take 58 months to clear pre-construction supply—nearly five years in a market where six months is considered healthy.
The video traces the breakdown back to the 2019-era pre-construction frenzy, when many buyers planned to flip contracts before closing rather than hold the asset. Rate hikes shattered that model. Appraisals came in below purchase prices, leaving buyers forced to inject tens—sometimes hundreds—of thousands in cash to close. The transcript then points to a second-order threat: private lending and “shadow banking”. Investors unable to qualify with traditional banks turn to high-interest lenders; defaults then ripple outward, especially if those private lenders funded loans using HELOCs on their own homes.
The speaker’s broader warning is about confidence and consumer spillover: when the middle class is trapped in loss-making assets, spending power contracts, dragging on the wider economy.
By: WBN Global Editorial Staff
Published: Jan 09 - 2026
TAGS: #TorontoRealEstate #CondoMarket #HousingCrisis #CanadianEconomy #Investing #WBNGlobal
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