INSTALL_FAILED_OLDER_SDK on Android Studio because of Android L

Question

I too know this is an issue of common, but I have not found a thread for the past hour or so.

I'm just trying to run my first Hello World app. It's a default, unchanged, fresh new project, built on the fresh Android Studio 0.8.2.

The device I'm trying to run the app on is a USB connected Nexus 5 with the latest Android 4.4.4 KitKat, on Debugging mode. The device has some apps I installed earlier with ADT bundle Eclipse.

The project includes a default Activity Main. untouched and unchanged. Everything is on it's default values.

I have no intention to develop for Android L yet and I did not want to add any of the classes or abilities it offered to the project. I only want to built a simple Hello World that will run on Android 4.0.3 ICS or higher.

I get the infamous "Failure [INSTALL_FAILED_OLDER_SDK]" error.

Thanks.

Android Manifest:

<?xml version="1.0" encoding="utf-8"?>
<manifest xmlns:android="http://schemas.android.com/apk/res/android"
    package="(domain)" >

    <application
        android:allowBackup="true"
        android:icon="@drawable/ic_launcher"
        android:label="@string/app_name"
        android:theme="@style/AppTheme" >
        <activity
            android:name=".MyActivity"
            android:label="@string/app_name" >
            <intent-filter>
                <action android:name="android.intent.action.MAIN" />

                <category android:name="android.intent.category.LAUNCHER" />
            </intent-filter>
        </activity>
    </application>

</manifest>

I Thank you in advance. I'm trying to learn and it's frustrating, all I wanted was to export the simplest project possible.

edit: I was sure I shared the build.gradle file, but apparently not. Here it is:

// Top-level build file where you can add configuration options common to all sub-projects/modules.

buildscript {
    repositories {
        jcenter()
    }
    dependencies {
        classpath 'com.android.tools.build:gradle:0.12.+'

        // NOTE: Do not place your application dependencies here; they belong
        // in the individual module build.gradle files
    }
}

allprojects {
    repositories {
        jcenter()
    }
}