Problem is NA motor, where you can't up the boost and power comes with rpm mostly, so you need to rev the thing to make it move, which of course increases noise, with turbo motor you don't need to rev it if designed to be torque monster and as all know, torque is what makes car move.
So I believe that turbo route would be better for car that is going to have decent audio system, but if I remember correctly your steering and brake system is causing some headache here compared to our situation where those are other side of the engine.
Do you already have a budget? I would like to recommend plan thing first on paper and estimate some costs, so you would have then easy targets to aim for when buying stuff and saving up, my guess is that this would also speed up progress, maybe plan few stages I, II, III where to aim?
It is only two months that you need place for car? Is your local council trigger happy with old cars without MOT like some places in UK, where some mint condition old cars have been crushed by council (or what is your local authority called)?
Your car still is relative good condition, works without problems etc. it is harder to find such each day, remember that you may regret selling it because of this, ask VND, he knows
It is rather unavoidable at these days that we all have to use fwd daily, just get something that does not inspire you at all so you don't spend any money on it unless needed, that way you will have more to use to your hobby car. My french crap was/is too quiet, so it inspired me to start improving it's sound dampening even more, put some 200 euros worth of sound dampening on it, sure it is very quiet now, but that money would of bought new motor for 360 for example and certainly french crap still is french crap
thought the knocking was the exhaust
so i learnt the hard way - wheel flies off ahead car slaps on the ground wheel rolls into a new golf 
didnt do much damage didnt get a chance to look at it properly was very shaken up 
so make sure you check your nuts gents! 
