I have a Fender Squier and it sound fine..
If it's not had intonation set up it will sound bad.. It also depend on amp setting and quality of the amp...
I also have an Ibanez starter guitar that sounds fine.. Pick-ups are a bit too hot for me, but I've adjust them a bit.. I use both weekly while my Tele and Alvarez acoustic stay cased up..
MIM Fender are in that price range as well as Epiphone.. It is really how a guitar feels to you.. So get out and try some...
I picked up my Squier at a yard sale and the Ibanez I traded a junk motorcycle..
When you get a new guitar, save your old Squier for experimentation.. an back up..
Just my 2Cent worth.. Good luck