Nathan, the brakes are hydraulic on a 706. They run off the same pump as the steering and I think the 3pt hitch too. (I often get those confused)
So, the hydraulic pump would have everything to do with the brakes not working.
Do you plan on using this tractor in winter? Better question, do you have winter where you are (didn't pay attention if you have a location in your profile)? Those old diesels start so much better if you plug them and let them warm up for a few hours when its cold.
Frankly, I would not want an older diesel unless there's a source of power to run a block heater and a battery charger. Yes, they should start if everything is in good shape, but it's rare to have everything in good shape and it costs lots of $$$ to get everything in good shape. The tractors generally work fine once running and can be operated with no ill effects, but they can be tough to start at times without putting a lot of money into the engine.
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