If you have to have steel it is going to be more expensive, especially if you want to reach carbon and aluminum weights, otherwise, with a full steel frame and fork and a mid level component group you are going to be 5lbs heavier than the competition and your bike won't spring or climb as well either. That said, sitting in the saddle cruising down the road you will have a smile on your face from the smooth supple ride of a nice steel frame and fork. Of course you can find deals on groups that are last season and score a nice steel frame from the 1990s for under $500, you can probably build something nicer for the same price as the Raleigh, but be prepared to invest time.
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1 Super Record bike, 1 Nuovo Record bike, 1 Pista, 1 Road, 1 Cyclocross/Allrounder, 1 MTB, 1 Touring, 1 Fixed gear