How to place dimensions?

Where do you place your dimensions? Until a while ago I've been placing the dimensions in model space on a separate layer but meanwhile I've started placing them on the layout
in paper space. I believe both methods are good enough although they have their issues and take their fair share of time to set up. But is there a better way to do this?
So, how do you place your dimensions and what advantages do you get from your following your way of doing things?
Thanks in advance, Rui Maciel
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