I’m also considering moving to Granada myself. I haven’t actually lived in Granada myself, but have plenty of friends that do. I work for a company in Granada - but do so from a ‘virtual office’! That said I stay there quite often.
I have quite a mixed bunch of friends an contacts in Granada - some artists, graphic designers, builders, businessmen, film people. For some work is quite tough locally, especially at the moment. I would say that is the critical factor to a successful life in Granada. Its a great city, its not expensive, its friendly and has enough culture without being too large. If you have an independent income, work online, or have a great business plan - tourism is big, I’m sure you’ll be happy in Granada.
As you know Its a fantastic location for mountains and sea. It doesn’t have the extreme unabating heat of inland cities like Cordoba, and it has the kind of culture its hard to find on the coast in the south with the possible exception of Malaga. Its quite chilly in the winter - be sure to get a place with heating!
Spanish language is of course really important to get the most out of living in Spain. I learned by living with a Spanish family for 6 months when I first came here 11 years ago. After a month I could get by, after 6 months I was pretty much fluent. If I had lived with other English speakers and mixed with foreign friends it would have taken me years to get the same level.
Take Spanish classes because people tend not to correct your mistakes is you don’t pay them to! I didn’t have classes nearby when I learned and I wished I had. Motivation and practice is what its all about. The internet is a great tool for learning spanish - but its easy to be lazy and get into English internet world!
Good luck, I bet you’ll love it!
Philip