Prince William and Kate Middleton have finally settled on their new home. $1.6 million is being spent renovating and updating what had been the home of Princess Margaret.  And the good news -- the massive house already has a nursery!

Rumors have been rampant for days that Kate is expecting. Whether she is or the pregnancy is just wishful thinking on the part of her adoring subjects, the Duke and Duchess of Cambridge's new home will easily accommodate a growing family.

The four story, 20 room home is part of famed Kensington Palace.  It has a huge living room, numerous bedrooms, staff quarters, a walled-in garden and the all-important nursery.

It was home to Queen Elizabeth's younger sister Princess Margaret and her husband Antony Armstrong-Jones and has sat empty since Margaret's death in 2002.

But if walls could talk, these would have amazing stories to tell. Everyone from the Beatles to the Rolling Stones to Peter Sellers was entertained there.

The place will be ready for the newlyweds in mid-2013, with the renovations being paid for out of a combination of private and public funds.

Fresh from conquering America, Prince William and Kate have moved into their first marital home inside Kensington Palace.

The Duke and Duchess of Cambridge have decided to start their married life inside a ‘modest’ apartment in the same palace where William used to live with his mother Princess Diana.

Up until now, the world’s most famous couple had been living at the Clarence House apartment in London that William shared with his brother Prince Harry.

The Duchess is dazzling!

Prince William and his glowing bride Kate Middleton attended a charity gala Thursday night and RadarOnline.com has the photos of the royal couple looking stunning at their first black tie event since their wedding.

PHOTOS: Kate And Wills Dazzle At Gala

Looking gorgeous in a Jenny Packham rose gown with Swarovski crystals, the new Duchess of Cambridge wore her long brown hair down around her shoulders with a slight curl.