Overseas property investors act on sterling surge

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by Gill Montia

Foremost Currency Group (FCG) has reported an increase of almost 100% in the number of people registering to buy euros and dollars.

The surge has occurred over the past week, since the pound began its recovery against both currencies.

The foreign exchange specialist also notes that the vast majority of its customers are making international payments in order to buy overseas property.

FCG managing director, Robin McEwen, comments: “The pound’s recent return to form is positive news for British investors who have been looking to take advantage of deflated property markets in the US and Europe, but have so far been holding back.”

According to Mr McEwen, many buyers are securing rates with a forward contract, which allows buyers to secure a beneficial exchange rate for up to two years.

The managing director sees sterling’s rise as “a welcome short-term boost” that allows savvy British buyers to “snap up some bargains while the exchange rate is positive, reaching a peak for 2009 against the dollar of 1.64″.

However, he warns that “the pound’s underlying weakness remains”.

FCG was launched in late 2005 and has since set up Foremost Property, a website that allows potential overseas property investors to search and view properties across multiple agents in the countries of their choice.