BUYING A 1989 525i

[elementz23]

Hey, i am looking to get a first car

Ive been looking at 5 series and love the e34. I saw a 1989 525i with 200 kilometres (125k miles) and ($6500 australian) and just wondering what things i should be looking out for. I heard people saying that the timing belt and water pumps etc shold be changed but i am concerned with the costs associated with running it. So wondering if you could help me out with what i should beware of and what to recognise in words of costs and repairs i will need to do when buying it. Anything else will be helpful.

P.S. also saw a 1989 535i for just a little more $$$ (7000 Australian Dollars)...i really dont want to be pushed for price