I have a Martin XC1T Limited Edition, a guitar with a spruce face, HPL (High Pressure Laminate) back and sides and Stratobond (birch veneers) neck. Cost me around £800 about 4 years ago.

You might think it sounds like crap - 'taint - it's a superb sounding guitar. Acoustically, it's very sweet and clean, with lots of projection and - because of it's construction - is easy to record. Electrically (I've installed a Baggs iBeam pickup in it), and it's powerful and very acoustic-sounding when amplified. Sounded better (to me) than a Martin Carthy Signature model at 3 times the price...

So - I repeat - go for sound and playability, and stick with those criteria for a start.

I also have several other instruments which were made for me as custom instruments by a local luthier. Handmade and fantastic value for money.

Think laterally.