It can be a good car if it was taken care of and maintained. If not, they can be horrible blackholes where your money and time disappear. If i were to do it again, I would buy a new one, use it up and crush it at 100k.
Most of the people who own them aren't exactly rich or in tune with their cars so most of the maintenance was done to meet inspection or get to work.
The 2.0 engine is decent for reliability if you don't wail on it. Stock clutches will last atleast 100k. Tranny is decent but with a weak reverse gear. Be sure to shift into first before hitting reverse to stop the cogset from spinning. Maintenance will need to be looked after frequently and more often than the manual really states. What stuck me the most tearing through the owners manual was the low maintenance interval specified. (e.g. Coolant for life). The result is a very neglected car made to last 100k. On the plus side, the parts are relatively cheap and plentiful.
I have a Mk3 94 Golf with a 2.0. The car was pretty beat up when I got it. I've been though almost every system on that car trying to put it back right. You name it, i've done it.
Mines was at 130k when I got it. Not one system really lasted on that car. The only thing I haven't touched was the lower block and the master cylinder. I did not see one thing that was made to last in that car. Mines is essentlally a new car from all the work done on it. On the plus side, it now drives nice on koni coilovers. New euro specs lights and a relay kit help a lot too. I get mid 20's city and 30+ highway. It really is pretty basic but nice for a daily driver if everything works. Insurance is cheap too.
There is a rust issues with these cars, floors and strut towers being the most important. Parts aren't the most robust, there are plastic coolant parts a plenty. Lots of high stress parts that should have been metal were made plastic and you'll find those annoyingly broken (e.g vent selection knob). The lights are not very stong. You'll be best served with installing atleast a relay kit and new housings.