It somewhat depends on when the belt broke. If the belt broke at idle, there's likely less damage than if it broke at 3500 rpm.
My timing belt on the 1.6TD broke on me due to road debris and surprisingly even though the head was damaged (bent valves, broken valve seats, broken lifter bores), the pistons looked remarkably untouched. I think I was lucky... I ended up getting a brand new head, but on the one you're looking at, you may be able to have it rebuilt with new valves and then put on a headgasket / timing belt. You won't know unless you take it all apart...
The diesels are pretty easy to work on...similar to other VW 4 cyl's. I gu ess you could say the diesels are somewhat simpler in that there is no CIS fuel injection or ignition to work on, but at the same time, they demand a bit more precision when you time the engine / pump and valvetrain. Diesels do require some special tools, but are known to be durable and last a good long time.
I'd check out that car and see if the rest of the car is worth having... fixing a head / timing belt / head gasket is not that hard and you could get it for a deal...