Here's how I usually handle items (magical and non-magical)-
All characters get to start with a logical set of armor, and any normal weapons they have Skills for. Also clothes and basic adventuring gear.
If the player wants to have a magic item for his character at the beginning, they pay for it from their starting Character Points.This means they have less points for skills, characteristics, etc.
If they acquire magic items during play, they can keep it, without paying points for it.