Lee Downes, 44, of Janlor Drive, Warrnambool, appeared in the Warrnambool Magistrates Court for a contest mention hearing on Monday.

He eventually pleaded guilty to being a prohibited person in possession of a firearm, handling stolen goods, possessing an unregistered handgun, possessing ammunition, dealing with the proceeds of crime and possessing steroids.

Police executed a warrant at Mr Downes' home on March 9 and found a loaded sawn-off shotgun lying on a couch in the lounge room.

Thirteen rounds of ammunition, a large range of suspected stolen trademen's tools and steroids were found in the home.

There was also an eight-metre boat which was discovered to be stolen.

Mr Downes was prohibited from having a firearm because of this prior criminal record.

He said a mate left it in his home and he loaded it the night before for protection.

Mr Downes said he had paid $5000 for the boat and when told it was worth $42,000, Mr Downes said he had got a good deal.

A solicitor revealed that his client had received threats from members of the Gypsy Jokers outlawed  motorcycle gang and he had taken steps to protect himself.

Magistrate Michael Coghlan said if Mr Downes pleaded guilty he would be jailed for six months. 

He said if the charges were contested and failed, the firearm charges alone could result in a 12-month jail term with additional time in relation to the stolen boat.

In April last year Mr Downes was placed on a 15-month community corrections order with a condition to perform 150 hours community work after going with a bow and arrows to confront a Koroit couple over an $8000 debt.

That order was breached by the new offending and Mr Downes was resentenced to a jail term which will be served concurrent with the new prison sentence.

In a separate case, a Portland 40-year-old man involved in a dispute with a neighbour has been charged.

Portland police were called to an incident on Sunday night about 8.30pm after a dispute between neighbours turned physical.

The victim suffered facial injuries.