Hi all, I am very new to this but have been reading heaps of posts in the Commercial Property Forum on SS and here. There is some very useful information, so thanks to all contributors over the years, I hope I can help as well in the years to come. My background is resi in the UK, specifically HMOs or houses of multiple occupancy, it seems they are called Boarding or Rooming houses here but are classified as Commercial. I am looking to get into CIP in some shape or form, I am still deciding on strategy. I like the idea of rooming houses but they seem a lot dodgier here with short term tenants etc. Mine in the UK are on individual 12 month tenancies, are professionals working in London etc, like we all were at some stage starting out (I also stayed in a few before investing over there with mates). So, getting down to CIP here, I would like your views. Since interest rates are extremely low by historical standards, this has pushed up prices of RIP massively, that together with the foreign money coming in due to the exchange rate weakening. With CIP, cap rates seem to have been squeezed, inflating prices. I believe as interest rates come down foreign buyers also enter the Auz markets looking for yield etc. So, I presume the reverse will happen when rates start to rise, which they will at some stage. The US is looking at raising rates next month, UK early next year so I would imagine Auz will follow that assuming China does not tank. So what will happen when rates start to rise, assuming next year? Margins will be squeezed (unless fixed IRs for existing holdings) and demand reduced. Values would then reduce, cap rates increase etc (all else being equal). This will be until rents go up due to the improving economy but there will be a significant lag in timing and I would imagine values will be down for a period. Is it, therefore, a good time to be investing at the moment? I guess there will always be good deals, but I would imagine there will be far more when rates rise and values reduce. I am interested in hearing your thoughts on this, if you have been through a rising interest rate cycle, the effect on CIP values etc.