CCTV has captured a group of up to six people entering the backyard of a Lighthouse Beach home shortly before it was broken into and the family's two cars were stolen.
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Police have confirmed that a break-in reported at the property early Saturday morning (August 27) was one of several in the area that night.
It follows a spate of car thefts in recent weeks, including from nearby Bourne Street and Kelvin Grove, which have community members concerned.
Andrews Street resident Alana Vergos said her neighbour's security camera recorded the group entering her backyard and carrying implements, which she believes were a machete and crow-bar.
They were dressed in hoodies and tracksuit pants. Several had their faces covered.
She said the keys to the cars were inside their home, just metres from where she and her husband Nathan and their five-month-old twin daughters, were sleeping.
She believes they were taken by members of this group.
Shortly after this video was recorded, the couple's Mitsubishi Outlander was stolen. The couple was woken and called police, who attended the home around 2am.
Just an hour later, after police had left, their Suzuki Vitara was also stolen.
Ms Vergos said her husband ran outside with a golf club as she stood at the door with one of the babies.
"We yelled at them and told them they can't do that," she said.
"But they then smashed into several other cars, which we believe were also stolen."
The Vitara was later found burnt-out in West Kempsey, while police and members of the community notified them the following day that the Outlander had been dumped not far from their home.
Ms Vergos said it had been low on petrol.
Port Macquarie police officers canvassed the area and conducted a crime scene investigation.
Mid North Coast Police are now asking members of the community who may have seen the group, or who have CCTV or dash-cam of the stolen cars, to contact them.
Ms Vergos said the pram and child car seats were recovered from the Outlander, although the couple must now organise a rental car.