I don't know why they are telling you to get bigger brakes, all you will have then is a slow car with big brakes. Waist of money.
If you are going to upgrade handling before performance then you will sooner be busted for using the handling mods than any performance mods.
The stock brakes will do fine until you get more power then a UK spec 8v.
Get the coiloveries and install them yourself, that will save you a bunch of money, hottuning will save you even more money and are a decent coilover, the car will sit low and will handle well with hottuning. Its up to you if you want to spend more on something better. I still wouldn't fork out more for a fancy set when my car is slow.
You have to remember that the car handles great in standard form but the engine doesn't perform well. I've got a set of hottuning and a good set of tyres and i can point the car in any direction at just about any speed and it will go there, it usaly just depends on how fast you can turn the wheel more than what mk2 can handle.
You should at least look at getting up to UK GTI spec.
Get an exhaust, cam, 2L bottom end and coiloveries. You should have ~90kw at the motor then worry about brakes and sway bars. If you are going to drive it hard as a daily then get some better pads and GOOD tyres. Your cars handling is nothing without GOOD tyres.
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