If you have a local ISP, they may be willing to host a server for you, dedicated for your own use, otherwise the cheapest (and hassle free) way of doing it is to do it that way, so you lease disk space and bandwidth, and are then allowed to the DNS pointed to their IP adress.
Although if you are IT literate and want to off-set hosting other sites to finance your dedicated up/downstream, then it is feasable, just a lot of work, creating automatic backups, sorting downtime, coverage for hols etc.
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