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Nearly half of all investors who bought condominiums completed in the Toronto area last year aren’t making enough rent to cover their holding costs, despite chalking up exceptional gains on the value of their properties, a new study finds.

No less than 44 per cent of investors who took possession of new units in 2017 were in negative cash flow — that is their rental income fell short of the amount needed to cover their mortgage payments and condominium fees, according to the study by CIBC and Urbanation, a market analysis firm.

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Though 45 per cent of those investors were short by less than $500 per month, another 20 per cent were short between $500 and $1,000 per month. And 34.5 per cent were in the hole for more than $1,000 per month.

“We know now that many of them are in negative cash flow, but they also made very nice money on their investment,” said Benjamin Tal, deputy chief economist at CIBC World Markets Inc. “The question is will they begin to sell?”