Replacing the drive bellows, ehaust bellows and water hose is a costly job, even if you can do it yourself. Volvo ujoint bellows are 100$ alone. Youll know right away if theres water in there just by loosening off the hose clamp and look in. I usually put a bit of oil in there before putting it back together.
Yea, greasing the u-joints is definately a good idea, but also adding oil there will help prolong the life of the u-joints and bellows and any water in there will be much more clear as the oil will be milky.
The exhaust bellows actually have holes in the bottom to let water drain when legs up and boats out of the water. Its normal to have water come out with the exhaust.
The water tube is a pretty tough hose, I'd be more concerned about the goose neck.(On the leg end). The earlier ones were aluminum and tend to corrode away, Volvo eventually went to plastic just for this reason.
I would loosen the lower oil drain plug and check the condition of the oil. If it were my boat, I probably wouldnt change it if it looked like new. Remember not to use synthetic gear oil if it has a brass cone clutch..
Sorry about sounding like a *****, I dont like seeing people replacing costly components needlessly and uninformed. It actually doesnt have to cost a fortune to own a boat.. And, I dont need your buisiness as I can hardly keep up as it is.
Fill the dam tub!