Personally, I would get a dog before I would get an alarm system.
This is along the lines of what I do for a living and alarm systems are just too easy to defeat (i.e. phone line & power--both of which are usually located outside).
I have had one occurence where someone tried to get into my house (while I was out). They broke the window but never made it past the dog.
The value of my dog has gone up exponentially since he is so attached to our kids. He will literally sleep at the top of the stairs, before the entrances to the kids rooms. You have to get through the dog to get to the kids, which won't happen (well, most likely won't happen).
Ask a cop and most of them will recommend a dog as a deterrent before a system. Plus it is much cheaper and more fun. Plus he senses when someone is coming near the house, something no alarm system can do (well, they can but it's more money).
/my $.04 cents.
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