i guess it really depends on your expectations, what you want out of it, and what your goals are.
sure, you can get a "starter package home studio" for around $1000, no problem. but you won't get "pro" results out of it. you'll get results that are similar to your demo, most likely, maybe a little better.
granted, you might not get great results out of a "pro" studio either. especially given your age and your budget, a lot of studios write off youngins and they don't care about you or your music--just your money. not all studios, but some.
given your age (of which i was not previously aware) and the level of your band, i'd recommend getting some gear and playing with it. get some books and do a LOT of reading. experiment with what you've read, and just get in there and get your hands dirty. it'll give you good experience as to what works and what doesn't, and you might discover some cool stuff in the process.
but don't expect it to sound like something you'd hear on the radio.
wade