You have a home, closer to the beach. That is a big plus. You made a good profit on the house you sold, big plus. It does not sound to me like you have made a bad 'investment'. It sounds like a case of thinking the grass could have been greener in the other one. But who knows? As the other person said - it could have had lousy neighbours / dodgy plumbing / termites - a myriad of things wrong that you will never know.
And just for the record - when my husband first saw the family house we bought (long story) - it was a dump - and he cried - the only time I have ever seen him cry. 8 years later and it is without a doubt the best purchase we ever made, is 'close to the beach' in a great suburb and location ... yes we have done some work on it .... but more importantly we have had and continue to have a happy family life within it's walls. Remember a house does not make a home, the family do.
All the best.
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