Okay, here is the issue. Whenever I create a new C++ class/header file with UE4, the file is created in UTF-16 format. For some reason, it refuses to compile with this encoding! I have to manually from Xcode change file type to UTF-8, save it and recompile. I have to do this for both .cpp and .h and it becomes legit.
This is more of a nagging pain, then a truly detrimental issue, perhaps it can be fixed in the future?