Just because it has high k's doesnt mean the engine is dead. Some of the mk3 guys have hit 200k and still going strong.
Are u going to be doing all the work yourself? A halfcut if u can find one will go for over the 3k mark but you would have to factor in service parts cost as well as engineering. In the end it all adds up and unless u want to be unique, going for a mk4 gti would be the cheaper option i would think.
Hope this helps
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