First, I've heard this many times, and also discovered it to be true - you get what you pay for. Second, it really depends on what you are planning to use it for, it's a bit like solving an equation - you need to take account of many variables. Take me for example: I live in Jerusalem - which means: hills, crazy drivers, roadworks all around, I carry a laptop to school, and it rains sometimes. Ok - this means that I need a light bike and many gears (because of the hills and the weight), a reasonably strong frame (I constantly have to go between the sidewalk and road) and tires which aren't too slick (need to break in winter...).