InstaNet Brain Drainer

The following is a quiz written by Albert Einstein. He said 98% of the people in the world cannot solve the quiz. Are you among the other two percent?

1. There are 5 houses in 5 different colors
2. In each house lives a person with a different nationality
3. These 5 owners drink a certain beverage, smoke a certain brand of cigar and keep a certain pet
4. No owners have the same pet, smoke the same brand of cigar or drink the same drink

1. The Brit lives in a red house
2. The Swede keeps dogs as pets
3. The Dane drinks tea
4. The green house is on the left of the white
5. The green house owner drinks coffee
6. The person who smokes Pall Mall rears birds
7. The owner of the yellow house smokes Dunhill
8. The man living in the house right in the center drinks milk
9. The Norwegian lives in the first house
10. The man who smokes blend lives next to the one who keeps cats
11. The man who keeps horses lives next to the man who smokes Dunhill
12. The owner who smokes Blue Master drinks beer
13. The German smokes Prince
14. The Norwegian lives next to the Blue House
15. The man who smokes blend has a neighbor who drinks water

There is no-trick to this - it needs deductive reasoning and definitely a pen and paper.