the mk3 golf is usually a good solid car ( normal rust apearing around wheel arches & door bottoms, apart from that, suspension is quite good,
parts are reasonably priced now, electrics are poor, and expensive (just try looking for electric window motors) anyway the 1.9 td is a good strong engine, better with service history, but not as fast as the TDI, but less to go wrong with it, i run a 1993 vw vento 1.9td myself (mk3 golf with boot) and love it, so if you can find a good td cheaply then go for it.
60mpg cant be bad.