I used to be into martial arts, and I ended up buying a Cheness Iaito. It was quite cheap (just under $200 by memory), proper forged steel blade, genuine ray skin, etc. It's not a flashy sword but good quality, sturdy traditional construction and I've been really happy with it.

I'd suggest you get an Iaito first to get used to the feel, otherwise you'll lose limbs. Plus it'll give you plenty of sharpening practice when you're ready to slice mats..