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Kate Middleton, Prince William Prepare Modest Baby Nursery

Kate Middleton and Prince William are counting down the days until the Duchess of Cambridge gives birth to their first child and a new report claims they recently completed their baby nursery.

The couple has been living in a modest two-bedroom cottage on the grounds of Kensington Palace for several months and a source claims they want their first child to have a modest upbringing. The nursery has been described as being "humble."

"They have a small nursery prepped, but it's humble. Kate felt it wasn't worth the money to go all-out," a source close to the couple told Us magazine.

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Middleton, 31, is due to give birth in July and the source revealed that she wants to remain close to her child particularly during the first few weeks.

"For the precious first weeks, Kate wants the baby to sleep in their room," the source said.

The Duke, 30, and Duchess are expected to move in with her parents, Carole and Michael, for at least the first six weeks after being released from hospital in a move that will break royal tradition.

Instead of hiring a maternity nurse and starting her new life in a royal residence, Middleton will live in her parents' Berkshire estate with her baby, who will be third-in-line to the throne.

"Kate says she 'just feels safest and most secure' with her family and believes that no one could be better placed to teach her about bringing up a baby than her mother, who has three children of her own," Daily Mail royal correspondent Rebecca English reported, quoting an unnamed source.

The Middleton family's Georgian manor is valued at $7 million and based in an affluent rural area. Carole is reportedly in the process of renovating the mansion in preparation for the baby's arrival.

"Carole fully intends to be part of this baby's life and Catherine, for her part, plans to spend a lot of time with her parents, especially while she is waiting for the new apartment to be completed," a source said adding, "and surely it is no bad thing this little prince or princess is given a taste of life outside of the Royal Family?"

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