Were there '97 1.6s, even FWD only?
Are you sure it's not a 1.8 or a 2.2?
Anyway, these older smaller displacement Subarus were pretty solid.
We had a '97 2.2 AWD and currently have a '99 2.2 AWD Legacy wagon.
Other than traditional Subaru oil leaks, the engine should be just fine.
Between possible leaks and consumtion, keep an eye on the oil level until you find out how much you typically need to add.
You might want to replace the PCV valve.
Was the water pump also replaced when the timing belt was done, as well as the tensioners?
Obviously give the engine reasonable oil changes, change the front and rear diff gear lube and do something about the tranny fluid, although you don't say whether it's an automatic or a real gearbox.
The coolant should be okay with the timing belt change.
If you feel really adventerous, flush the brake fluid and do at least a turkey baster flush of the PS fluid.
These are solid old cars, as good as anything from Honda or Toyota, and the smaller displacement flat fours do sound good, unlike the 2.5 in our Forester.
