I was in the same boat a while back. How to buy a good guitar ..on a budget.. and get one that will sound good and is a good value? After researching and shopping around..a lot...I came to the conclusion I didn't need a high-end guitar with a high price tag. I've heard some pretty cheap (inexpensive) guitars sound very good with a good guitarist playing them. So I recommend the Yamaha 700 series. Mine is the fg730, has rosewood back and sides, and sounds awesome. The fret action is low, so it won't be difficult to learn on. I know there are way better guitars, but for the price, it's hard to beat. Just my opinion.