Two people are on the run and one man has been charged after allegedly threatening a man at knifepoint and stealing his car during a violent burglary in Melbourne's west.

Police said three burglars wearing hoodies broke into the home in Albion through an unlocked front door, before arming themselves with knives from the kitchen.

They said the offenders then woke 32-year-old Prabhath Ponnamaneni as he slept on the couch and threatened him with the kitchen knives while five other occupants were upstairs.

"They took knives from the kitchen and put one to my neck," Mr Ponnamaneni said.

"[They] asked me to unlock my phone and reset my phone and then took all the electronics downstairs.

"They just wanted me to be quiet and they warned me, if I made any noise, they'd hurt me."

Police said a sleeping resident was held at knifepoint. ( ABC News: James Oaten )

The Indian national, who moved to Australia a year ago, said he had yet to tell his family overseas of the terrifying experience.

"I was very scared and I just thought of my wife," he said.

"I was aware of that happening in these western suburbs but I never saw them," he said.

"We were six people staying in the house so we thought no-one would actually dare come in.

"I was actually going to apply for a visa for my family but now I don't know, I'll have to think about it."

After searching the Anderson Road home, taking wallets from other rooms, the masked men stole the victim's car and smashed through a brick wall as they drove away.

They crashed it a short time later in the nearby suburb of Braybrook.

The three men crashed through the brick fence when they fled in the victim's car. ( ABC News: James Oaten )

Three men fled from the scene but a 21-year-old was arrested soon after.

Police later charged a Sunshine West man with home invasion, aggravated burglary, theft of a vehicle and other theft-related offences.

Police are still looking for two more people.