I recently was shopping for a "first" guitar (I've played a very small amount but it was time for my own guitar) and I was very wary of purchasing one of the "economy brand" models like the squier and epiphone. I wanted a good guitar but was operating on about a $250 budget (about 130 pounds).
I went to a local guitar shop (yesterday, in fact) with a particular brand in mind that I'd heard good things about. I had gone a few days before to try the squiers and assorted similar models but I wanted to be sure I was getting a good guitar that would last me awhile, so I went local.
I ended up picking up the guitar I wanted after the proprietor of the store was kind enough to play it for me through an amp in a couple styles. He did the full set up for free, included some picks and a very brief lesson in how to play my new guitar and take care of it. He fixed the action for me (it was a little low) though I think I'm not totally happy and would like it lowered a little bit.
I'm really happy with it so far, the fit and finish is far better than that of the squiers I tried and the sound is better.
Anyway, moral of this very long winded story brings me to my model suggestion- see if you can find a local retailer of the Cort brand of guitars. The model I purchased was the M200, and it costs at the high end 130 pounds. I think you'll be happier with it for a longer period of time than with a squier. However, if you're really attached to the strat/tele appearance, this one won't be as attractive to you as it's a PRS style.
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