Question

I have an object in my game that has a few meshes and when I try to rotate either of the meshes either way, it only rotates it around world axis, and not its local axis. I have a rotation = Matrix.Identity in a class constructor. Every mesh has this class attached to it. Then this class also contains methods:

...
public Matrix Transform{ get; set; }
public void Rotate(Vector3 newRot)
{
    rotation = Matrix.Identity;
    rotation *= Matrix.CreateFromAxisAngle(rotation.Up, MathHelper.ToRadians(newRot.X));
    rotation *= Matrix.CreateFromAxisAngle(rotation.Right, MathHelper.ToRadians(newRot.Y));
    rotation *= Matrix.CreateFromAxisAngle(rotation.Forward, MathHelper.ToRadians(newRot.Z));

    CreateMatrix();
}

private void CreateMatrix()
{
    Transform = Matrix.CreateScale(scale) * rotation * Matrix.CreateTranslation(Position);
}
...

And now the Draw() method:

foreach (MeshProperties mesh in model.meshes)
{
    foreach (BasicEffect effect in mesh.Mesh.Effects)//Where Mesh is a ModelMesh that this class contains information about
    {
        effect.View = cam.view;
        effect.Projection = cam.projection;
        effect.World = mesh.Transform;
        effect.EnableDefaultLighting();
    }
    mesh.Mesh.Draw();
}

---

EDIT:
I am afraid either I screwed somewhere up, or your tehnique does not work, this is what I did. Whenever I move the whole object(Parent), I set its Vector3 Position; to that new value. I also set every MeshProperties Vector3 Position; to that value. And then inside CreateMatrix() of MeshProperties I did like so:

...
Transform = RotationMatrix * Matrix.CreateScale(x, y, z) * RotationMatrix * Matrix.CreateTranslation(Position) * Matrix.CreateTranslation(Parent.Position);
...

Where:

public void Rotate(Vector3 newRot)
{
    Rotation = newRot;
    RotationMatrix = Matrix.CreateFromAxisAngle(Transform.Up,          MathHelper.ToRadians(Rotation.X)) * 
    Matrix.CreateFromAxisAngle(Transform.Forward, MathHelper.ToRadians(Rotation.Z)) * 
    Matrix.CreateFromAxisAngle(Transform.Right, MathHelper.ToRadians(Rotation.Y));
}

And Rotation is Vector3.
RotationMatrix and Transform are both set to Matrix.Identity in the constructor.

The problem is if I try to rotate around for example Y axis, he should rotate in a circle while “standing still”. But he moves around while rotating.

Answer 1

The problem was that, when I was exporting model as .FBX the pivot point wasnt in model centre. Thus making the model move while rotating.