Answers:

Kremmen
Melbourne

Staying in downtown Osaka is extremely expensive, while staying in the suburbs is quite reasonable. KIX isn’t very near the city anyhow. When I was there, hotels near KIX were 1/4 the price of a downtown equivalent and it’s not expensive to catch a train downtown. (Indeed, less expensive than actually catching one from the airport itself.)

Ah i see, so what about Kobe? i’ve noticed the price is slightly lower than ones from the main Osaka city. Is Kobe a different city altogether or just a suburb?
I’ve been looking mainly at Tokyo hotels/ryokan but because my flight doesn’t fly there i’ve decided to seek accommodation in Osaka perhaps for a few days depending on the sightseeing sights. ;)

Kremmen
Melbourne

Kobe’s 10-20km west of Osaka. I’ve not been there, but I do know it’s on the opposite side of the bay to Kansai, so quite some distance from the airport by land. There might be a ferry or something across.