My self is quite disappointed with hosting services we have in India, and looking forward to make my home desktop PC as server to make host my website (database and pages). So just wondering how Google or any search engine will treat my website as crawling, indexing and ranking point of view and what are the major pros and cons for that.
They don't care that your site is hosted at home or a major data center. They do care about page loading speed and website uptime, however. You need to make sure your website loads quickly and is reachable whenever Google wants to crawl it. If your site loads slowly or is unreachable often your rankings will suffer for it.