Hey Lucus.
It really depends how much you want to do and how much you like the grand. They are a great car, but to do a 4-5 inch lift is going to cost mega dollars. They require new tailshafts and Slip Yoke Eliminators.
That being said, my little bro has an earlier grand (ZJ) with 33s and 1 inch lift and we just cut into the body (neatly) and it works great for a low budget street driven jeep. You get all the fruit of a neat stereo, leather, cruise control etc with a nice price tag. The whole lot cost him less than 10G. So you'd be able to go double locks and upgrade the D35 rear diff with some good axles too. This would make it unstoppable, but depending where you wanted to go (large rocks) you will need to make your own sliders, etc.
A later model Grand is exactly the same story. I'd stay away from the 4-5 inch lift and go a 2 inch OME lift with 33s and trim the guards to suit. It's quite easy and will get you a good performing rig. Add a front locker from ARB (I like selectable in these cars because they are constant 4x4 and you want to retain their street manners.
As long as your not going rock hopping that would be a great setup. In fact it is the setup that my Fathers Grand WJ V8 is and it is a perfect camping/sand running/trail driving machine. If you want to hate on it and damage body parts then just get amungst it!
Your other option is definately the TJ wrangler. Coming from a Feroza it will already be noticably larger inside. They have alot of the creature comforts without any of the extras!
They are much easier to modify to the extent you are talking about and you would probably even find one already modified for the price you're talking.
It was particularly cheap, and an awesome deal, but a mate of mine in Rockhampton just sold a 04 TJ Wrangler, Black, Auto, 70,000Kms, Double ARB locks, lift, 33s, hardtop, winch, rear swing away tire carrier, stereo and a heap of other little things for $14G.
It was a bargin and I should have bought it myself! But it gives you the idea anyway. There are always bargains on ausjeep. Just gotta keep your eye's peeled for the good ones or the lemons.
I hope that gives you some ideas anyway.
In short, if you want a fire trail weapon with super street comfort - buy a WJ. throw on a 2 inch lift and 33s and trim body so they don't rub. If you got a few bucks left, lock up the front and enjoy.
If you want to go SERIOUS 4x4 playing. Grab a TJ. Easier to mod with a huge range of parts off the shelf. Or better yet buy one already built that someone's wife is forcing them to sell the Jeep!
Just as with all modified cars be sure you're not buying problems!
Catch ya
D.C