I'm convinced that the best way to set up a home gym is to go cheap and simple. Take it from someone who's spent far too much money on stupid gym contraptions, the best way to go is to buy a good, solid weights bench (just a plain one - not one with any attachments etc) and a set of good dumbbells. Free weights are probably the best way to build core strength, plus they're the cheapest to buy.

Cardio machines are a joke anywhere in the world where you can walk/run/cycle outside.