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Is $2,000 enough to do a complete changeover?

How do I identify which system to use? Internal/External? Here's a photo of the current unit:

I just bought my first ever IP! The building inspector advised me today that there are excessive carbon build up at the gas ducted heater unit, and that it is highly dangerous. The house itself is 30 years old, and from the looks of the heating unit (Vulcan), I can guess it might be around that...