The group, who were armed with a gun, broke into the house early in the morning.
They held the owner at gun point and demanded he sign over ownership of the old car Mustang.
The vehicle as many used cars in Australia has a GPS tracking device which led the police to a factory placed in White street in Bayswater.
Police used armoured vehicle (Bearcat) and tactical response unit searching the property since they believed the armed men was inside.
The car was found in a laneway.
It looked as if the car has been dumped. Anyway, investigation is continuing.
The owner of the property is assisting police with their enquiries and forensics will examine the Ford Mustang later.
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