The Squier isn't a bad guitar for the price, but you will most likely want something a little better very soon, since that is considered a "student" model. If you look around on craigslist, eBay, etc. you will find many used Fender MIM Teles in your price range. A lot of these are in very good condition. I guess there are a lot of people who take up guitar and then lose interest, so they sell them at a loss.
Do you have even the slightest mechanical skills?..if so you might consider what I recently did. I wanted a Thinline Tele but couldn't spend too much, so I bought a Chinese knock-off Thinline on www.rondomusic.com for $160 and swapped the neck out with a new Mighty Mite neck ($90). I also replaced the nut with a TUSQ and replaced the tuners w/ Fender tuners. I now have a guitar that plays as nice as my real Fender MIM Tele and total cost was just under $300 - that is half the price I paid for my MIM Tele. I was assuming you were looking for a Squier Tele, but if you want a Strat, pretty much the same applies. Good hunting!
Judge a band by the guitars they keep. If there are no Telecasters in play,move on.
