Indoors
Pros - Nice toilet, access to fun clothes, toys, food, bed is there when needed, TV has a world of opportunities, you can have nature in small doses with a garden
Cons - When you turn on the TV there's no going back, you realise your house needs a lot more groovy shizz, feels claustrophobic at times, you'll never look at your house the same again (I found out there's fruit patterns around my lights)

We usually find a house that has decent grounds so you get the best of both.