Hey guys, I am looking into starting to play electric guitar on a budget (200$ for both the guitar and amp) and found the Austin RC100. What do you guys think of it? Do you have any other one to recommend instead?
That's probably the lowest budget I've seen for an attempt to get a truly playable guitar and amp. Or did you mean $200 *each* for guitar and amp?

I'd look for a good playable guitar first. Honestly, I'd spend most of my money there; you are, after all, trying to play guitar, and if the guitar is well-nigh unplayable, you're not going to get very far. I have no idea about the Austin RC 100, though the cost is likely to use all but $5 of your $200 budget ($145 plus $50 shipping?).

Here are some options that I've actually got some experience with:
http://www.rondomusic.com/SX_Guitars_Furrian_MN_Alder_BI_VWH.html ($119.95 plus shipping). A basic, usable tele.
http://www.rondomusic.com/SX_Furrian_MN_BK.html ($119.95 plus shipping). Essentially the same guitar you're looking at in the Austin RC 100, but less expensive thanks to the marketing model from Rondo Music. If you're in the lower 48 states, shipping will probably be less than the $50 listed on the Austin guitar.

If you poke around the Rondo site, you'll likely find other colors (and guitars) that suit you as well. Rondo (Kurt Zentmaier) has a pretty good return policy if there's something wrong with the guitar from the factory, and because there's no brick and mortar store (he imports directly), the prices are pretty good for the quality of the guitar you get. I have seven of his "Agile" brand guitars, and while I have far more expensive guitars in the stacks, those have been stunning for the quality/price.

My suggestion for amp is...no amp. If you're not playing for other people, I'd suggest finding a good used modeler, such as a Line 6 Pod XT Live (should be able to find one for $100-150) and a very good set of earphones (my favorites are the Sony 7506, AKG240, Sennheiser 280 and BeyerDynamic 770s or equivalents). You can play these at ear-splitting volumes that no one else in the room has to hear. You have a ton of amps/cabs and FX modeled in the things, and those alone will save you a ton of money in buying pedals, etc. And should you ever decide you want to hear it in air, you can plug it into a set of good studio monitors, a PA-type powered speaker or even (should you begin playing arenas) a professional audio (PA) system. And if the earphones and the monitors and the PA system are good ones, you should hear pretty much the same thing from each. It's difficult to hear quality guitar playing from a little combo amp with an 8" speaker, but you can rattle your brain with a Diamond Plate or a Triple Rectumfrier within those headphones.
I also would abandon the idea of an amp for the time being, and go with some kind of headphone amp or computer software. Something like a Vox Amplug would do for a start. However, I'm not sure (literally) about expensive headphones. I discussed this with my mates at the music store , and they had found, while mucking about the the headphone out on amps, that lo-fi headphones gave a better emulation of a speaker than did the hi-fi headphones. I ended up with a set of inexpensive electric drum headphones. I think it might come down to specifics and try it and see. As an absolute beginner, I don't think you need anything too sophisticated, as long as it works OK. However, as you get further into it, I would pay a good deal more attention to the amp than the guitar.
I'm with Tony. Get a $200 guitar and skip the amp for now. There are pretty cheap headphone amps out there, some can do both clean and distorted sounds. Go for that for now. And when you have another $130 or so you can got for a Peavey Vypyr VIP or Fender Mustang amp.