Police believe a vehicle at the Hereford Street home in Wodonga was targeted for four-wheel-drive wheels about 3am on Friday.

The crooks left but returned and launched the explosive device in a bid to destroy the evidence.

Bailey Bradbury said he initially heard a noise as the wheels were stolen, and came out to find a jack underneath the four-wheel-drive.

Those responsible returned about two hours later.

"Someone came back with a little homemade molotov and decided to throw it," he said.

"I heard the crash - I thought they were trying to get their equipment back.

"I came outside, realised there was a fire, got an extinguisher and put it out but by that time they were gone."

Mr Bradbury called the police, who established a crime scene.

The tyres were found a few doors down along with other items used in the attempted theft.

Detective Sergeant Graeme Simpfendorfer said the incident could have caused hundreds-of-thousands of dollars in damage, and put lives at risk.

"As soon as someone attempts to conceal a crime with arson the results can be devastating, but thankfully not in this case" he said.

"A crime of this type, any crime, is not needed in the current environment.

IN OTHER NEWS:

"This could have destroyed property and put lives at risk."

Detective Sergeant Simpfendorfer said people in the community would know who was responsible for the incidents.

"We're seeking witnesses or information," he said.

Call (02) 6049 2600 or 1800 333 000.