For the best range of build threads for track day cars, including Golf2 VR6 (that actually handles), Golf2 1.8T, Golf2 16V, Golf3s and also a Golf4 1.8T go log in to the forum area of
www.northloop.co.uk and have a look through the Members cars and projects section.
If you fancy something different after the 106 I'd recommend a Golf2 Syncro with a Rallye Golf/Passat Syncro gearbox and various other running gear, plus a grunty motor in the front - lighter than a Rallye Golf and stiffer shell than a 2WD Golf there are two people on here who run them as track cars...... or with the money you're thinking you'll get, go buy a Golf2 G60 or G60 Syncro from Germany - high tunnel shell with/without 4WD and you can swap the motor out for something tougher further down the line.
I'm surprised a 106 is worth that much, to be honest - plenty of Golf2 track prepped motors (normally 16V) that come up for more like £1000-1500.