If you pay more for the home gym equipment then you would have more equipment for you to perform the health work outs. If you want the gym to be stronger and ever returning then you have to invest more amounts. Unless and until you want heavy duty body building there is no need for high quality of home gyms which costs more. The general method is to start a home gym by spending some amount between $ 500- $ 2000, get trained with the lower level activities first and then you could think about long term changes and high level training activities.
If the availability of space is limited then one should buy foldaway equipment so that it will not occupy space much. Quality and costy gym equipments are need if one decides that his / her gym is made for specialized body building. As you get stronger and heavier the amount you can lift increases and the pressure on machines also increases; the cheaper equipments will break down under the pressure as it is not designed for heavy work outs. One should not get bored by doing the same exercise every day for that they should have a variety of equipments and hence their training and work outs increases day by day.
There will not be much problem if you are the only one using the gym. If you have a partner, teenage child or brother who also uses your home gym then you have to buy equipments according which suits them also. Before you make the investment for purchasing a home gym, you have to plan clearly that is you have to see whether your budget suits in buying the new equipment else an old one will do.