Properly setup as a drivers car even a small front wheel drive hatch back can be far more fun on real roads. Unless you happen to have a race track or a disused airfield next to your house how often will you ever get to safely drive a Ferrari or Corvette fast? A small hatchback, or better a light, low power RWD car won't be much less fun round a track either, in inexperienced hands too fast a car will simply stop you from being able to drive it at the limit consistently, I'd genuinely choose a 106 or MX5 over a Ferrari or Corvette if you offered me a track day in one.
skylines sure are fast , thought the r32 is the lightest of the new breed it doesnt handle aswell as its newwer brothers but stil its looks better then the R33 , R34 and even the new R35
turbos are a ok choice but you can manually get the boost up.5 with the addtion of a decent blow off valve ( i.e HKS one , 400 dollars new or 100 quid used , great investment though there quiet loud ) but still before any major work is done , make sure it can breed cause skylines have a terrable history of blowing engines like paris hilton do's anyone with over a million in there bank account.
just remember not to sticker it or add a wing and you have a very cool car....
just my two cents...
if i had a choice of cars in that price range id go for a 88-92 m5 because its got a fair bit of poke in the engine and tbh... no really mods are needed just a set of semi slick toyo's and your away... though i do a agree with the hatchback vs ferarri rant tbh , do you actually need to go fast in a ferarri ?? the noise alone makes then more fun then Any suzuki swift or pug 106... and yeah i did own a S1 peugeot 106.... quiet fun but never be as much fun as driving say a porshe or a ferarri.
as for the talk of modding the skyline , let him do whatever he likes , you cant spend money when your dead so let him get a life lesson from it , we get about 5-10 cars a day in the garage from kids ( 17-23 ) who drive wreaks ( code name for honda civic mitz colts , old evoss's wrx's etc. ) with a few quid invested. All you can do really is warn him because the only mod id even think of doing to that car is a upgraded waterpumper and radiator but still if he wants to upgrade the turbo or stick on a nice set of alloys , i think he should though he will learn quickly how expencive modding cars Really is.