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Hi, we're considering buying a mid-size diesel SUV (5-seater) for all-round use (town, long distance, occasional off-road). Our ceiling is around $60K so 2nd hand European cars are within range. I would like some advice about whether a brand new Santa Fe or the likes of a 2nd hand Q5 or Toureg would be best suited to us. We'd like to factor in things like mechanical reliability, depreciation and driver safety into the equation. Appreciate your thoughts about this or other makes we could consider.

That's a decent budget, and it will largely come down to your personal preference. Most of the vehicles you will be looking at in this price range will rate highly from a safety perspective so you don't have too much to worry about in that regard.
There are obvious benefits in buying new, particularly that you have the peace of mind of a 3 year factory warranty. Also, even with a second hand vehicle that seems to be in top condition, you can't know with 100% certainty how it has been treated from new. A new vehicle will have no wear and tear when you take delivery so in theory, maintenance will be less. Obviously, a used vehicle will have partly worn tyres, brakes and other wear and tear items, so you are likely to have some expenses earlier than you would if you bought new.
However, when buying used, a good deal of the depreciation has already occured, so arguably, you're getting more for your money and depending on how long you plan to keep it, depreciation may be less when you come to sell.
As a generalisation, European vehicles are very well finished and great to drive but they do tend to be more expensive to maintain.
The other consideration with an SUV is whether to buy petrol or diesel, but you've obviously already decided which way to go in that regard. The AA carries out annual running cost calculations based on an average cost over a number of vehicles of a particular engine capacity. While the average for large petrol and diesel vehicles is very similar, large petrol SUV's can be quite hard to sell due to fuel consumption, so we'd agree that diesel is the preference for SUV's.
Another used vehicle you might consider is the BMW X3. A good new (or near new) option may be the Ford Territory Titanium diesel.