Cheap Engine / Gearbox To Upgrade For More Power

[andykao]

I'm looking for a decently cheap option engine / gearbox (and the rest of the car), something i can upgrade (put a bigger turbo, forged internals, etc) for more power (looking to reach somewhere in the 300-500 hp area). RWD or 4WD

I'm in europe, so no american cars available. I also don't like BMWs, so that's not a plan...

I currently own a SAAB 9-3 AERO (turbo, 205 hp stock - currently running about 250-260, if i build the engine and throw a bigger turbo i can easily go above 300 with very little upgrades). The thing is, it's FWD and even the current 250 hp makes it complicated to drive (plus the chassis is total crap in this so it corners like a barge).

I also own a lexus is200 (1g-fe engine). I was thinking i could do a full swap (to a 2jz or 1jz) but when looking at the costs of it, it could (and would) spiral out of control. The engine itself is not that expensive, but if i put a 2jz on it, i will definitely bolt on a big turbo (which costs a lot) and it will need a decent gearbox (which will cost an arm and a leg). So that's not an option... If i keep the current 1g-fe engine, i could add a supercharger, but that's freaking expensive for the 50 extra horsepower i'll be getting - or a turbo, but that will need forged internals (which are really expensive for the 1g-fe : 2000 GBP for the rods only - compared that to the 500 GBP for the forged pistons + rods for my saab engine). So the lexi is a no go.

What i'm looking for :
- RWD or AWD to handle 300+ hp without any issues
- age is not a problem, i like old cars as well, been looking at old mercs and volvos...
- must be reliable (not talking about minor things, but the major stuff, engine, gearbox, main electronics)
- must be available in europe
- budget : variable, but i would like to buy a really cheap car (1000 - 2000 or less) and invest a lot into it, or something more expensive (but newer)
- must have a proper gearbox to handle 300+ power (in case of the 2jz, the engine itself is about 3000-5000 but the gearbox is 7000-10000).

Options i have thought of:
- VAG 1.8T : don't know which cars have 4WD (probably an audi quattro or something - i don't mind seats or skodas, anything will do), but i heard these engines are not that reliable when going for more than 200 hp
- Subaru EJ20 or 25 (impreza, legacy, forester) also i hear some bad stories about them...
- Mitsubishi's out of my league, too expensive.
- Nissans (SR or RB) are hard to find (and so expensive).
- minis are too small for me (i'm tall)

Car's gonna be a daily driver, i'm not gonna push it hard every day. Ideally, i would like something with 4/5 doors...

[designforlife]

Subaru Forester would be my vote... my colleagues one is running almost 300bhp already and he's barely had anything done to it.

[SamR380]

If you're on a budget I wouldn't consider buying something to modify, just get something that's already fast. Possibly something someone has already modified.

The Pistonheads classified sections has useful filters like 'power output' and '0-60 time'.