Question about german shepherd dogs?

I am getting a german shepherd dog. I guess german shepherds prefer to be outside more often than inside. Please answer my questions; 1.) I'm getting him at 8weeks old. I am purchasing a large dog house from wal-mart, more or less like a shed, but this is a large house for a dog. I'm placing this in... show more I am getting a german shepherd dog. I guess german shepherds prefer to be outside more often than inside. Please answer my questions;

1.) I'm getting him at 8weeks old. I am purchasing a large dog house from wal-mart, more or less like a shed, but this is a large house for a dog. I'm placing this in my backyard. Is that a good idea? Yes or no, and any suggestions highly recommended. I will place him in the dog house to sleep.

2.) I have a huge backward, probably half the size of a foot ball field. I do have neighbors. However, when my dog gets older, I will do more advanced things with him --ball, frisbee, etc. This is a 2 part question. The 1st part of my question is this: What is the chance of my GSD running away from me while playing in my backyard OFF the leash?

The second part of my qusetion: Can I keep my GSD on a very long leash, and I mean an extremely long leash while I play frisbee with him? My only concern is this: Could the dog hurt himself if he was running around while on the leash not realizing that the leash is about to pull back because he is going too far?

3.) People at a nearby complex play with their dog on the apartment's lawn. Their dogs NEVER run into the street and they are playing frisbee with them. If those dogs are good to stay on the apartment lawn, my GSD would be smart to stay with me on my lawn and play with me right?

IF WORST COMES TO WORST, I have an enclosed fench area that I could play with him in. The cost is $6 per day. I don't mind the fee.

4.) How often should I excersie him? Running, playing ball, etc., etc.
Update: becca-- the only reason why i said GSD prefer to be outside as opposed to inside is because a company had an article on the internet stating if you keep them inside they could be inactive dogs... they prefer to be outside. That's according to the article.
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