I highly recommend using symlinks to synchronize dotfiles with a locally cloned repo. That way, you can make changes to the dotfiles sitting in your home directory and it'll be reflected in your repo should you want to commit those changes.
Wait, I've done it the other way around. I have a repo directory, and I created symlinks in ~/ pointing to the dotfiles in the repo. I have a simple install script to symlink the files.
Would you suggest having the physical files in ~/ and adding their symlinks to a repo?