Best budget beginner guitar?

I've been thinking of getting the Yamaha FG700S Acoustic Guitar. It's $200, and the videos of people playing it have been pretty convincing. What do you guys think?
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ppinkham wrote:Do you plan on primarily being an acoustic player?
Joe wrote:ppinkham wrote:Do you plan on primarily being an acoustic player?
For some reason it was stuck in my head that to progress to the electric guitar I had to first do well with an acoustic. Would it then just be better if I saved more money so I could buy an electric guitar, amp, and other gear necessary for the guitar?