Detective Sergeant Adam Forehan, of the Colac police crime investigation unit, said the occupants were asleep in their Balnagowan Avenue home when the offender entered the property between 10pm on April 25 and 3am on April 26.

"The unknown persons, or person, entered the property through the front door," he said.

"A dog inside the property alerted the occupants, who woke to discover a handbag had been stolen."

The handbag contained personal cards, passports, airline tickets and an iPhone.

Detective Sergeant Forehan said the bag was recovered in close proximity to the property the following day.

"The passports were recovered but it appears cash, cards and the iPhone were stolen," he said.

"We are asking anyone with information to contact Colac CIU or Crime Stoppers."

Police are also investigating a break in at a property in Colac's Wood Street between April 15 and April 25.

Detective Sergeant Forehan said the house was undergoing renovations.

"Makita tools worth over $1000 were stolen," he said.

Anyone with information should contact Colac police on 5230 0000 or Crime Stoppers on 1800 333 000.

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