Right, for Starters - your 1999 Mk4 Turbo; How many 000's miles. Service book records ?
1999 cars were not as good as later versions - sorry - but the later cars were better.
1) Ok - rear suspension bounces a bit, it is front wheel dive, has the 4 pot lump right over front wheels, BMW is rear wheel drive and propshaft - so very different, also BMW is better balanced for weight distribution. The fix is to run your 205 / Montreal 2 wheels at lower pressure. Get soft compound next time you change tyres - run at 28/29 lbs. This baby is much better than most hot hatches, which are generally bad on the stern. The stern on later MK4's is very hard, a little harsh for some. You should be able to feel driving over a piece of pea shingle ! Speed humps are a nightmare.
The steering ratio (less wheel turning) plus skinnier tures on the Golf versus the BMW325, make the steering easier in traffic on the MK4 2001 car.
In common with all road cars, the camber and castor angles are set up for understeer. You can alter this characteristic on both the Turbo and BMW325's from E30 onwards
2) & 3) The suspension when good is absolutely quiet - zero knocking. Hey - BMW also has an error on 70 - 100mph real heavy braking ! The offside front wheel moves backwards from new (see BMW trailing arm rubber bush) - I know. Golf is not much worse, accept more weight is pitched forward, which is different to 325ci.
4) Get new discs and pads immediately, on the 2001 car, the brakes are superb, by comparison to Ford, Vaux and Renalt hot hatch rubbish on a 2001 plate.
5) Clutch has a very deliberate bite at the bottom 75% of the pedal depression, a clutch which operates at the top is buggered. Very good operation on power when the plate is central and in good serviceable condition. In fact the clutch is better than the BMW for standing 1/4 mile starts. Women who wear heels will have a problem with the proper set up of the Mk4 Turbo clutch. NB - GTI 2 Litre (non turbo) clutch on a 1999 is a squelchy peat bog.
6) Look for Oil leeks over hot manifold, take the plastic cover off - very easy, by turning plastic screws thru 90 degrees, then lift-off and look when hot. Maybe that clutch is burning out ? Get under there and smell.
Hey, did you drive the car BEFORE buying it ? If it's a dog, but looks pretty, get shot of it and get your dosh back, and get a late MK4 turbo AUM or AUQ engine.
I know, I've driven Both the Beemers and later Turbos, the older MK4 T's and GTI's don't compare (unless you spend money to correct the faults) ------------------- Very Sorry.
A nicely set-up MK4 turbo with the right tyres (Pirelli Pzeros soft compound, or Goodyear F1's and the right pads, Bocsh platinum plugs, and Castrol SLX fully synthetic Oil, All sensors and MAF perfect.  This car can spin, and is a treat for the Used Car Price.ÂÂÂ
Drive before you buy, sounds as if your's had more polish than real maintenance applied. "Over Shiny" Cars that drive poorly are best avoided.
Good luck with the fix-  or flog.