I have worked from home for the last 3.5-4 years. My current client is dispersed all over Europe so all my interaction with them is over the phone.
As with all things, it has benefits and downsides.
Benefits - More time with family as I finish at a reasonable hour. I can also do school runs.
Downsides - It is easy to sit on your backside and not move all day. It is also very isolating.
Personally I prefer to work from an office. If nothing else, the travel time allows you to disconnect from the working day.
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