When you consider 125lbs of olympic plates, valued at ~$125 used (can often get cheaper than $1/lb tbh) you're paying about $375 for the rack and bench.
For the brand, I'd say that's a decent deal, unfortunately anything Powertec is usually overpriced (not to say they're lacking quality by any means, but the price they charge for new stuff is obscene).
For what you're looking for, I think you can do better, especially on the budget you're on.
Make sure to check kijiji and craigslist, you'll always get higher quality equip for the price (based on your budget I'd advise against buying new).
If space is an issue consider squat stands, they have a lot of decent ones out there, I personally have these:

Can stack on top of each other in a corner and still holds ~400lbs with no issues.
You can get ones without safety spotters, I personally got this one as I can stack weight on the back to balance things out (much needed for stands).
Just be careful when starting your own home gym, it's addictive and gets costly over time.
Edit: To give you an idea on what you can get used check here:
http://forums.d2jsp.org/topic.php?t=64139895&f=60I've done a home gym 3 different times, each time utilizing mostly used equip (or low end new stuff) and kept it way way cheaper than if I were to buy things new.
Just gotta be patient, you can't always find the deals you want the day you're looking, gotta troll kijiji/craigslist on the regular.
This post was edited by Wopsey on Mar 1 2016 02:04pm