Hmmmm, brings back memories of the early-80's, when the VW bug was so popular here.
since you're only 16, just repair the 1600, increasee to 87mm pistons, install oil filter/external oil cooler or doghouse cooler/shroud, extractor exhaust, and live with that.
DON'T BUY THE PORSCHE ENGINE! it's not a bolt-on, requires more precise assembly/clearances, parts cost MUCH more than "bug" parts. not too much aftermarket parts, either.
FWIW, a well-built VW engine would easily smoke a porsche 1600, with much less $$$ outlay.
dollar-for-dollar, ya can't beat a 1775cc engine, with cam/excellent heads, merged exhaust and dual 48 webers(44IDA webers for street).
this is 1980's technology, unsure of 21st century mods.
i'm into supercharged big-blocks in my daily driver.