Hi and welcome to CS mate.
Here are a few options I would recommend from cheapest to most expensive:
1. Combi machine i.e. built-in grinder. Ive used one of these myself and they are an awesome starting point. With freshly roasted beans and good technique youll be making coffee better than most cafes.
2. Probably the most popular machine and grinder combination out there and not without good reason. A considerable jump in price to option 1 but better quality and a 58mm group handle on the machine which will make it easier to find spares & accessories. Fantastic resale value and bargain price.
3.This coffee machine is the same as option 1 but without the built in grinder. The K3 grinder is a big step up from the built in grinder and I know this from personal experience. I had one of the combi machines then bought a K3 grinder and noticed a huge difference the quality of coffee. Not that I was unhappy with the quality before that. You could probably also get a package deal with the Rocky grinder which would make it more affordable. The K3 is a better grinder than the Rocky.
4. This is a new player on the market and from reports a very good machine. It has a PID which is a device that allows you to control temperature very precisely (something which is more difficult on the above machines). It also gives you better steam for milk drinks. You can add an after market PID to the above machines although this would work out cheaper. By the time you add a quality grinder and other accessories you will be well over your budget but it could be worth it.
The best advice I can give is to visit one or more of our fine sponsors. See the list to the left of the page to find one near you. In your budget allow for a good quality tamper.
When visiting your local sponosr you should also ask them about water quality. They should be able to recommend what level of filtration you require if using tap water and this will also need to be budgeted for.