After upgrading to Xcode 6.1, and iOS 8, I experienced network connecting issue in simulator. It worked for https requests, however, it returned an 1005 error for all http requests. I googled and tried all the suggestions that people commented on the internet[1] like "Reset simulator content", "remove ~/Library/Developer/Xcode/DeriveData", "re-install Xcode" etc. None of them was actually working for me.

For isolating the issue, I tried to run the same code on other mac and it works. Based on the most people's comments, it seems that it is due to the Xcode simulator doesn't support the network configuration somehow. So I decided to reset my Wi-Fi settings by removing extra preferred networks, and just keeping the one I normally use, and that did the magic fix.

[1] http://stackoverflow.com/questions/25372318/error-domain-nsurlerrordomain-code-1005-the-network-connection-was-lost