I am absolutely no expert when it comes to woods and maintaining guitars (have a friend who works as a guitar repair and so he always does this kind of things for me).
but I beleive, that there are good reasonable priced instruments that with a little help can sound awesome.
I bought a squier tele affinity just to have a tele guitar - price was about 180$. changed nothing, love the guitar and even played some gigs with the guitar although I had to tune it often).
then a friend of my father (a country player) sold me three guitars for 240$ - a washburn western guitar, a washburn travel guitar and a cheri telecaster - all of them heavily played.
the cheri never was an expensive guitar but it is a really heavy beast that weighs a lot. I took it to my friend and he undertook the guitar a whole maintainance program (rewireing, adjusting the tuners, changed the knobs,..) and the result was mindblowing. it is now my favorite guitar for certain songs. the sound is amazing and really what I was looking for. it now is worth about 400-500$ (not an expensive instrument!) the squier now hangs on the wall and I only use the guitar for some practises.
the bottom line:
I think if the cheap instrument has some quality in it, you can get a really, really great insrument with some minor adjustments. but I guess you need a little luck cause not all cheap instruments turn out to be that good.
I always dream of really expensve guitars but never played one cause I always thought that I do not play that good so that I will really earn such a good instrument...
and thanx to alex for this thread cause I think if you have a cheap but good guitar then do something with it and play it.........
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